Leaping from runner-up to third place is J.P. Morgan’s trio of analysts guided by Antonio Roberto Henriques in London. With a coverage universe of nearly 90 names, the group wins high marks for providing “clear explanations of the likely impact of Basel III,” according to one London-based fund manager, referring to the series of banking regulatory requirements that take effect beginning this year. The crew recommended six of Lloyds Banking Group’s enhanced capital notes — three euro-denominated and three in British pounds — in January 2012, when the convertible bonds were yielding between 12.1 and 13.5 percent. The analysts saw the British banking powerhouse as a compelling recovery story and its ECNs as particularly underpriced. By mid-January 2013 the yields had tightened to between 6 and 7.6 percent, and the researchers continue to recommend them. — Ben Mattlin |
Investment Grade – Banking & Financial Services: Third