12 December 2011: Survey: SVTS as perceived by Investors

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The survey


IEM Finance undertook its ninth online survey of investors who are clients of the French primary dealers (SVTs) from October 19th to November 18th, 2011. This survey, conducted on behalf of the French Treasury Agency (AFT), aims to assess the quality of commercial relations and services provided by SVTs to their clients.

Aside from IEM Finance, no other party, including AFT, has access to the nominative answers provided by the survey’s participants.

In 2011, 346 SVT clients answered the questionnaire, compared to 342 in 2010.


Main results of the survey:

- Among the five most frequently mentioned SVTs considered to be the main partner on fixed income markets in general, Barclays Capital has retained its top position since 2007. BNP Paribas and Deutsche Bank rose in the list of the five top-ranked SVTs to the second and third positions respectively. Lastly, JP Morgan and HSBC remained present in this leading group and are equally placed in fourth position.

- Regarding the French Treasury securities market, ranking of SVTs changed only slightly in comparison to 2010. BNP Paribas has retained its leading position of SVTs most frequently cited as being the main partner for this particular market since the survey began in 2003. Natixis joined the top 5 ranking for the first time in fifth position. (1 - BNP Paribas; 2 - Barclays Capital; 3 - Société Générale; 4 - HSBC; 5 - Natixis).

- The most important criterion when selecting an intermediary was whether or not the intermediary was an SVT. The slight decrease in perceived importance of this factor observed in 2010 continued into 2011. The League Table published by the AFT had gained in importance in 2010, however, this slightly decreased in 2011. This criterion remained as the second most important factor in the selection process of SVTs.

- When asked what quality was expected from services offered by SVTs, the quality of pricing was considered to be the most important, even moreso than in 2010, when a slight decrease was seen. The percentage of those surveyed who consider it to be “very important” rose from 85.2% in 2010 to 87.2% in 2011. Following several years of decline, investors now attach more importance to the quality of research, which rose sharply from 36% in 2010 to 40% in 2011. The percentage of those surveyed who consider the quality of information as “very important” decreased in 2011 (from 56% in 2010 to 50% in 2011). Investors continued to attach less importance to the quality of services provided by back and middle offices. Only one quarter of investors considered it as “very important”.

- The average mark obtained by SVTs for the quality of information, advice and sales coverage decreased sightly when compared to last year (7.2/10), as well as for the quality of research (7.3/10). A decline in the average mark for the quality of pricing was also observed, which nevertheless reached 7/10.

- In 2011, the ranking of the five best SVTs in terms of information coverage on French government issued products changed slightly from previous years. BNP Paribas retained its leading position, while Deutsche Bank regained its place in the top-five, in fifth position. (1 - BNP Paribas, 2 - Société Générale, 3 - Barclays Capital, 4 - HSBC, 5 - Deutsche Bank)

- Most of those surveyed (85%) were “very satisfied” or “satisfied” with the functioning of the French government debt market.

- The percentage of those surveyed who were in contact or wanted to get in contact with AFT rose in 2011.

- Lastly, regarding the strategy of AFT to introduce more flexibility in the choice of securities to be issued, often proposing off-the-run securities, the majority of clients (71.2%) were “very satisfied” or “satisfied” with the outcome. 22.2% of those surveyed didn’t give their opinion.

Press contact:
Tân Le Quang
+33 1 4004 1550
+33 6 7224 0388