Despite fee growth from the Investment Banking and Securities Dealing industry's traditional underwriting and advisory services, both cyclical and structural influences on trading activity have ultimately harmed revenue for operators in recent years. Industry revenue is expected to decline over the five years to 2016. However, this decline does not tell the full story of the industry's immense recessionary losses and rapidly evolving competitive landscape. Industry revenue is still failing to exceed prerecessionary highs. Yet, the industry's smaller operators continue to evolve. Since competing in FICC requires scale and massive investments in technology and compliance, boutique investment banks have alternatively focused on merger and acquisition advising. Additionally, the industry's largest players should benefit from the increase in interest rates that is expected to continue in the years ahead. These trends, combined with general improvements in the macroeconomic landscape, are forecast to raise industry revenue over the five years to 2021.
This industry is composed of companies and individuals that provide a range of securities services, including investment banking and broker-dealer trading services. They also offer banking and wealth management services and engage in proprietary trading (trading their own capital for a profit) to varying degrees. Investment banking services include securities underwriting and corporate financial services while trading services include market making and broker-dealer services.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.