These have been the best of times and the worst of times for investment bankers. Western deal makers were singed by the credit turmoil. Their peers in Asia and other emerging markets have had a bumper year.
India’s 10 top investment banks collected more than $1 billion in fees in 2007, according to Dealogic, a firm that tracks data on this business. That’s less than the investment banking fees collected by the big boys in Japan, China and Australia; but more than in Hong Kong.
No wonder the bonuses have been fat this year. The fees are a fallout of a more important trend—capital issuance has increased in emerging markets. Take IPOs. In 2007, the four Bric countries accounted for 39% of the total global IPOs. That’s up from 32% in 2006. Nearly 40% of this was raised in emerging financial centres. But it’s too early for London and New York to be worried. They will rule for a long, long time.