Gone are the days of being a plain vanilla banker. But the crises of the moment, namely Eurozone debt doubts and increasing government regulations, are creating opportunities for “entrepreneurial” financiers.
Start with exchange rate and debt price volatility. Cox says it means that multinational companies will have to hedge their exposure like never before. Which gives currency, commodities and derivatives experts a brand new way to gain access to corporate boardrooms, which had previously been the private fiefdom of traditional M&A bankers.
With bank lending harder to come by, particularly in Europe, companies will have to go to investors directly. Which creates underwriting business for enterprising bankers and investment opportunities for cash-rich private equity firms.
Even if a worst-case scenario plays out in Europe and the Eurozone breaks up, it would still create new opportunities for foreign exchange traders with 17 more currencies to trade. How’s that for finding the silver lining in every cloud.
Looking at the U.S., Cox sees opportunities for mergers among the 7,000-plus smaller, regional banks that are ripe for consolidation. Whereas in South America, companies are looking to create regional businesses by acquiring assets from retreating European owners. 2011 saw a record number of intra-Latin American takeovers.
And in a related article from Economic Times, consulting firm McKinsey & Co says Asia will become the biggest corporate and investment banking market by as soon as 2015. Global corporate and investment banks will derive almost half their revenues-as much as 45 per cent or about $ 790 billion-from Asia by 2015, led by India and China, from about 33 per cent or $ 442 billion in 2010.
What’s your take? What do you think will be the bright spots for investment banking jobs in 2012? Add your comments below.