Thus far DLJ might appear not to have created much impact in e-commerce beyond spinning off its on-line broker, DLJdirect. But appearances in this case are deceptive, in part because DLJ is not in many of the low-margin, commoditized businesses which are plaguing its larger peers and also because the Axa-owned US investment bank is responsible for one of the more innovative implementations of an e-commerce tool. It is one which competitors might do well to investigate more fully.
The bank has used technology as a means of leveraging its reputation in other areas to begin to build a presence in high-grade corporate bonds. Two years ago, DLJ was nowhere in high-grade debt. It had some coverage through its high-yield researchers and sales staff who would look at crossover names, but little else. In the autumn of 1997 the firm hired Chris Lynch from Smith Barney to build and run high-grade origination. At the start of this year he also took on responsibility for sales, trading and research, and so is now the global head of investment grade corporate debt. He hired about 30 people and oversaw the building of a system called the FED - the financial engineering desktop.