Bank of America 2001 Annual Report Download - page 32

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30
Developing strong expertise in select sectors, focusing on key strategic
clients and building deeper, multi-product relationships will drive revenue growth and
secure a market-leading position in global corporate and investment banking.
BANC OF AMERICA SECURITIES (BAS) DELIVERED for Adelphia
Communications, a key client, by raising more than $4.5 billion in
financing in 2001 across common equity, convertibles, high-yield and
bank debt. The $1.5 billion concurrent equity/convertible component
was the third-largest cable equity financing ever done.
BAS was bookrunner on simultaneous equity follow-on and
convertible subordinated notes offerings, as well as providing bridge
financing and advising on a multibillion-dollar merger and acqui-
sition assignment. In a difficult environment, strong distribution
efforts in the U.S. and Europe resulted in both offerings being signif-
icantly expanded beyond their original capital-raising targets. This
important transaction involved several different product groups
working together to provide solid advice and timely execution, and
serves as an excellent example of our strategy in action.
In debt capital markets, consistent with our industry
sector strategy, we have aligned our expertise with each team
to provide market-leading ideas and experience that result in
the best execution available. All of our products enjoy leading
market shares. We rank No. 1 in the U.S. in private placements,
No. 2 in syndicated finance, No. 4 in high-grade, No. 5 in
high-yield, No. 6 in asset-backed and No. 7 in mortgage-backed
securities. For the past three years, investment banking fees
from debt capital products have grown at a compound annual
rate exceeding 10%.
Global Risk Management provides both corporate
clients and investors with sales, trading and research for
interest rate, commodity and credit derivatives and foreign-
exchange products. These are scale businesses where we are
a market leader because of our diverse client base, leading
technology, risk-management skills and intellectual capital
combined with strong credit ratings and capital base. We
rank first in both interest-rate derivatives and global foreign
exchange with U.S. corporate clients, and Treasury and Risk
Management magazine recently named us the best deriva-
tives dealer across all product categories.
These products not only serve our large corporate and
institutional investor market, we also have a unique oppor-
tunity to serve middle-market and high-net-worth clients.
Working with the Commercial Banking and Private Bank teams,
we estimate we could significantly increase the number of
clients who use these products.
As a market leader, managing our risk is a key priority. Our
excellent foundation in risk techniques and strong technology
platform continue to be enhanced by placing risk-taking within
the individual business units. Our product approval and ongo-
ing review processes cover all aspects of risk taken by each
business, and we continue to introduce advanced analytics and
technologies and apply severe stress-testing measurements.
Our equities business, with both a cash and derivatives
platform, has made substantial progress over the past two
years. According to Equidesk, we have moved from 12th to
ninth in lead-managed equity in the U.S. since 1999. We are
bank compared with 12% in 1999, and revenue per strategic
client has grown 54%.
We are also dramatically changing the way we estab-
lish and manage relationships with our investor clients. The
sales organization is moving from a product focus to a client
focus, with sales teams being restructured to address the
needs of the client across the entire equities and debt spec-
trum. We are aligning measurements and incentives to sup-
port and reward this client-centric approach. We are also
upgrading our capabilities to enhance our secondary trading
and better align our research capabilities to support the sales
teams. This focus on clients and the totality of their needs will
further deepen relationships, leading to significantly increased
volumes and associated revenues.
Strategies related to our products focus on increasing
the size of our M&A, capital-raising and risk-management
business while maintaining our strong leadership in treasury
services and syndicated finance.
Creative Financing
Solutions Deepen
Relationships