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E-mailExcellence in Precious Metal Markets
Winner: Deutsche Bank
In 2007, Deutsche Bank set a goal to be a top tier player in all areas of the commodity market. Under the direction of Head of Global Commodities, David Silbert, Deutsche Bank have made impressive progress towards that goal, increasing market share in key sectors of the complex, attracting top talent as its commodity team has expanded, and boosting revenues. The bank has won dozens of important new clients as a result of its intimate and hands-on client approach – the result: Deutsche Bank is now an established Top-5 commodity trading, finance and advisory house (joining the ranks of Goldman Sachs, Morgan Stanley, Barclays Capital, and JP Morgan).
Deutsche Bank have established one of the industry’s most formidable physical commodity trading businesses in metals, gas and power and combined it with their sales and structuring expertise to offer unique solutions to clients.
DB extended their lead in the commodity-linked investment product market, launching dozens of new products and offering sustained liquidity in their flagship funds and notes which provide enhanced indexing strategies or similar forms of dynamic risk management. DB offer investors a wider range of commodity investment products than any other bank: over 300 different trading strategies linked to every conceivable commodity from gold and copper to wheat and freight. In addition, DB can tailor products into any format desired by clients, in any currency, with any pay-off structure. Investors have voted with their wallets, placing EUR19 billion in DB commodity index-linked products in the past two years … more than any other bank.
In November 2009, DB launched a new commodity index that allows investors to earn positive returns in both commodity price rallies and commodity price falls: the DBLCI Allocator index which brings together the DBLCI - MR Enhanced index, which uses a bespoke proprietary rolling technique to enhance returns, and the DB Commodity Harvest index which tracks a carry trading strategy.
One of the world’s first customisable commodity indices: DBLCI Flex, launched in Q1 2010, allows investors to design their own index, choosing which of 20 different commodities the index tracks and what weightings each commodity will have. The DBLCI Flex is among the first commodity index-linked investment products to allow investors to choose the individual components of the index with flexible rolling mechanisms and component updates.
DB this year also launched the DB Exchange Traded Commodities (ETC) platform which allows investors to gain exposure to commodities via liquid, transparent securities without having to trade futures contracts or take physical delivery of commodities. It is the first platform to offer comprehensive exposure to benchmark indices, optimised indices and physical commodities and the first to be listed on multiple exchanges. It is also the first to offer FX hedged products and the first to use allocated gold as collateral.
DB were the No 1 market maker in the new steel, iron ore and minor metal derivatives markets that they pioneered in 2008/2009, and took important steps to develop other emerging markets such as sugar derivatives, executing some outstanding deals for producers and consumers and bringing new liquidity into the market via investment products linked to minors. This included establishing highly successful strategic alliances with the steel trader Stemcor, freight broker London Dry Bulk Shipping, and a joint venture with Czarnikow, one of the world's leading sugar merchants.
Their research in the emission markets is top class; in freight markets DB have continued to excel; and in precious metal markets Deutsche Bank have been voted the clear winner in this year’s Commodity Business Awards. DB’s commodity research team also had an outstanding 2009/2010, regularly calling the markets right. DB gold analyst Dan Brebner, has been one of the most accurate in the industry in defining trends and prices.
DB is now a clear leader across all sectors of the emission markets, building on this position by developing groundbreaking new emissions-linked investment products and by completing landmark emission trades for a broad range of institutions. DB continue to expand and strengthen their secondary market trading to complement the dominant position the bank has achieved in primary emissions business.
The Award for Excellence in Precious Metal Markets 2010 was presented to Ronan Donohue, Head of Metals Derivatives Trading at Deutsche Bank by Gyles Brandreth, celebrated British author, broadcaster, actor and former Conservative Member of Parliament.
