For a sixth year running, Matthew O’Connor of Deutsche Bank Securities finishes in the top spot. The global recovery will continue to benefit such capital markets segments as equities, fixed income and investment banking, if first-half 2013 trends are any indication, he says. “There are some good underlying positives in these businesses in the long term that will likely be themes to play, more so than loan growth picking up and short-term rates rising,” explains O’Connor, 38. As a result, banks with exposure to those sectors will outperform other banks. These include money centers Bank of America Corp., based in Charlotte, North Carolina, and JPMorgan Chase & Co. and Citigroup, both headquartered in New York. Morgan Stanley, which O’Connor started covering in the past year, is among his top picks. The New York–based financial services giant is “doing well in the equities business; the wealth management business is gaining momentum; and if interest rates or equity levels were to rise from here, there would be further earnings upside,” he believes. O’Connor “gets the big picture and isn’t afraid to call it like he sees it,” avers one backer. — Carolyn Koo |
The 2013 All-America Research Team: Banks/Large-Cap, No. 1: Matthew O’Connor
