Euromoney’s second Fixed Income Research survey gives those banks that no longer follow the “traditional” fundamental sell-side credit research model a chance to be nominated by their clients.
This year’s survey was conducted online from Tuesday, January 16 until Friday, February 23 2008 under the new title of Fixed Income Research. Voters were presented with two choices – credit research and trade ideas. The questionnaire presented a menu of options enabling voters to pick and choose from any of the 51 categories presented for both survey branches.
For credit research, investors were asked to rate named analysts and teams for the categories indicated. For trading ideas, only teams could be nominated. Scores were given in all categories in the ratio of 5:4:3:2:1 for first, second, third, fourth and fifth place nominations respectively, then summed and divided by the total score in each category to produce a percentage.
Scores were weighted as follows to take into account the size of funds under management or volume of secondary turnover.
Investment grade:
Greater than €10 billion – weighted by factor of 7
Between €5 billion and €10 billion – weighted by a factor of 5
Between €1 billion and €5 billion – weighted by a factor of 3
No estimate provided, or less than €1 billion – no weighting
Hi-yield:
Greater than €450 million – weighted by a factor of 3
Between €150 million and €450 million – weighted by a factor of 2
No estimate provided, or less than €150 million – no weighting
Other credit – emerging market/western Europe:
Greater than €1 billion – weighted by a factor of 4
Between €500 million and €1 billion – weighted by a factor of 3
Between €250 million and €500 million – weighted by a factor of 2
Between €100 million and €250 million – no weighting
Other credit:
Asset-backed: weighted as for Investment grade
Indices: weighted as for Investment grade
Credit derivatives: weighted as for Investment gradeUnfortunately it was found necessary to exclude some replies due to irregularities in data provided or withheld by respondents. Among the principal reasons for exclusion were:
- Yahoo/AOL-type email addresses given
- People voting for just one person or one firm on the ballot
- Private investors
- Insufficient biographical details
- Correlated replies from, usually but not always, the respective asset management division, ie, five people from ABC Asset Management voting for only for ABC plc on five separate ballots.
We received 1,696 valid replies in total, a 44% increase over last year’s final tally of 1,174 valid replies.
If you have any questions about the survey, please contact Andrew Newby, head of research, at anewby@euromoney.com