Latin Finance - July 2008 - (Page 13)

investment banking outlook responsible for derivatives and But in Brazil, Deutsche has since lost corporates, joining Eduardo Centola, costructured products. its way following a raid by Itaú that took head of LatAm investment banking and four senior bankers, including former Martin Werner, the other co-head, as Brazil CEO Alexandre Aoude. Roberto well as Daniel Wainstein and Antonio Swiss Brazilians Pereira, two senior Brazil While US investment banks, bankers, on the Investment European lenders and rising Banking Division Brazil locals ramp up Brazil Stock Price ($) Investment tanking Operating Committee. capabilities, the dominant Despite the Rabin Swiss shops UBS and Credit Jan 1 2007 Jun 6 2008 Decline (%) transplant, Kennedy sees Suisse – which still boast an Citi 55.70 20.06 64 Goldman’s Brazil presence excessively large portion of UBS 60.33 23.91 60 being largely staffed by the Brazil business – have Lehman 78.12 32.29 59 Brazilians. done very little new hiring Merrill Lynch 93.10 39.02 58 Kennedy says that despite having lost key 81.43 40.81 50 Morgan Stanley initially, Goldman will go executives. Credit Suisse 69.85 48.99 30 after some of the better Credit Suisse lost Deutsche Bank 133.24 100.66 24 known and larger corporate Sebastien Chatel, former JPMorgan 48.40 40.14 17 names to establish a track head of ECM and Adriano Goldman Sachs 199.35 169.34 15 record. But ultimately it will Borges, a real estate Source: Google finance seek to bank all types of investment banker to Merrill quality companies. Aside Lynch. It hired Merrill’s from an advisory role on the Enrico Carbone to replace Bovespa’s IPO last year, the shop has Borges, and filled Chatel’s spot with two Watanabe, a vp in fixed income who secured a mandate to help CSN spin off helped lead the precatório effort, also left in-house junior executives – one based in Namisa, an integrated iron ore mining Brazil and another in New York. Both will for a local securitization boutique. complex, to a strategic buyer. If closed, Still, Deutsche’s New York-based DCM report to Jeff Bunzel, head of ECM for that deal could be worth up to $11 the Americas. But with a large portion of team has managed to stay in the game, billion. its senior bankers around the region still continuing to grab mandates on deals in With strong US and European in place, including Brazil rainmaker José Argentina and Venezuela. And the shop franchises, Morgan and Goldman hope to appears to be set on keeping a presence Olympio, the shop’s executives dismiss capitalize on what they claim as more the importance of the losses. sophisticated structuring, sales and “We have a lot of big surprises still to trading capabilities to outsmart local come this year,” says Pedro Chomnalez, players and league table incumbents. head of LatAm investment banking. Harland sees Morgan’s strong convertible Indeed, the 2007 leader of the ECM and equity-linked franchise playing a role league tables floundered amidst thin for Brazil’s growth companies, while volumes in the first half, but pulled a Kennedy says that fixed income – which major coup in June by securing a lead accounts for the majority of Goldman’s mandate on a $14 billion equity followglobal revenues – will be a top priority in on from iron ore giant Vale. Brazil. Chomnalez pledges Credit Suisse will “We are very hopeful that a bigger top the ECM league tables in 2008 again, domestic debt market will develop,” says and also expects its M&A fee revenue to Kennedy. “And as that happens we’d double that of 2007. As of mid June, his hope to play a significant part in that. If shop boasted $51.25 million in M&A fees we can get to a level where there’s a from the region, top of the league table vibrant local debt market, Brazil’s going with 21.79% market share, according to to be in a really different place.” Dealogic. This compares to $16.80 Deutsche, Bank is among the more million in M&A revenue (12.40%) in the sophisticated innovators in Brazil’s local corresponding period of 2007. Big surprises coming, says Chomnalez fixed income market, especially in Credit Suisse is also backing the regards to securitization. The shop Lorentzen Group, a main shareholder in almost single-handedly opened up an Votorantim Papel e Celulose, which is set in the region. Seth Waugh, CEO of the entirely new ABS product in the form of to be sold in the coming months. That Americas for Deutsche, oversees a deal, in addition to the potential revival LatAm team co-headed by Marcelo precatório securitizations in 2006, of a Vale bid for Xstrata, would certainly Blanco, head of debt and equity for the demonstrating the value of combining offshore expertise, smart local talent and region based in Buenos Aires, and David boost the shop’s M&A fees. Vale also said it could use the proceeds of an equity Hinsley, based in New York and an international distribution network. July/August 2008 LATINFINANCE 13

Table of Contents Feed for the Digital Edition of Latin Finance - July 2008

Latin Finance - July 2008 Contents Investment Banking Outlook Compensation Survey Colombia Investment Banking Borrowers vs. Investors Banorte Profile Braskem Financing Strategy Brazil Hydro Finance Peru Port Privatization Panama Money Flows Argentina Local Markets Guide to Banking Technology Who Said That?

Latin Finance - July 2008

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