Credit Suisse Beats UBS In Brazilian Market Share

by Stewart Douglas

Story link: Credit Suisse Beats UBS In Brazilian Market Share

Swiss investment bank Credit Suisse has beat rival UBS in rankings published today for the fast-growing Brazilian equity market in terms of capital, primarily as a result of four major deals put through in the last week.

The top-flight investment group accelerated beyond UBS in rankings published by research house Dealogic after it was involved in four out of five substantial IPOs this week in the Brazilian market, raising a significant $4.7 billion - a new record for one week.

The move sees the bank recover from rocky investments over the summer months which shook most major global investment banks, with securities in previous stable markets thrown into turmoil by the fallout from the US sub-prime sector.

On top of that, the firm was also involved in what has been the single most significant initial public offering ever in Latin American markets, overseeing the $3.2 billion IPO of the Sao Paulo stock exchange Bovespa, in conjunction with fellow investment outfit Goldman Sachs.

The move sets Credit Suisse up with a 28% share of the market compared to the 24% share held by UBS, yet both still remain significantly ahead of the rest of the field in terms of their influence and proportion of total market capitalisation in the region.

Previously it was UBS that led the way in the Brazilian equity market, which has seen strong growth in recent times with investors looking for alternatives to traditional ‘matured’ markets in light of the credit crisis and topsy-turvy share performance on major global markets.

Despite Credit Suisse’s lead, UBS is still very much a substantial player in the Brazilian market, and many analysts have been quick to point out that this is an all-time record week for the firm within the Brazilian market.  It remains to be seen how long the firm remains at the top over UBS, and what the rival investment firm will do next to regain its dominance.