Global Markets comprises all origination, trading, sales and research in foreign exchange, money markets, repo , government, agency and investment grade bonds, emerging markets , exchange-traded and OTC derivatives , commodities, structured products and securitization .
Global Markets increased its revenues in 2003 and strengthened its dominant position in many product areas, despite substantially more challenging market conditions, particularly during the second half of the year. Global Markets remained true to its client-focused business model, with around 85% of total revenues derived directly from business with institutional and corporate customers. On the other hand, we maintained a disciplined and limited approach to proprietary trading. With investment grade corporate bonds and residential mortgage-backed securities , Global Markets achieved gains in order flows, particularly from U.S. money managers. U.S. investors voted Deutsche Bank the number one trader in U.S. Treasury securities in 2003; in foreign exchange, we won accolades in surveys by financial magazines.
Revenues from structured products grew at an impressive rate, particularly in credit, interest rate and foreign exchange derivatives. Deutsche Bank’s strength in derivatives was again reflected by awards from Euromoney and Derivatives Week. In 2003, Global Markets expanded derivatives technology to real estate, private equity and project finance.
Deutsche Bank was again the leading underwriter of euro-denominated bond issues. Moreover, we have been consistently ranked in the top two among international bond underwriters and among the top seven underwriters of investment grade corporate bonds in the U.S. market.
Our presence in the bond markets was underlined by good rankings in numerous surveys in 2003, notably Euromoney’s Capital Raising poll, which ranked Deutsche Bank number one. International Financing Review voted us Bond House of the Year for 2003.
Important initiatives demonstrating Global Markets’ pursuit of market leadership in 2003 included Deutsche Bank’s part in the launch of the iBoxx credit default swap index and the inauguration of derivatives on economic statistics.
