A Brief Idea About Bulge Bracket
Bulge bracket comprises the world’s biggest investment bank. This is a group of world’s largest and most beneficial multi-national investment banks. Tombstone is a financial industry advertisement and the first group of banks listed in this is termed as bulge bracket. This advertisement is mainly used to notify the public about various financial transactions or deals.This group of international banks provides advisory and financial banking services, apart from researching on financial products. The banks under this group were first to invent new financial products like mortgage backed securities, credit default swaps and carbon emission trading. The market maker of the US treasury securities are these Bulge bracket firms.
The Bulge bracket banks have a strong presence in the major regions of world like the Americas, Europe, Middle East, Africa and Asia-Pacific. So it is a prestigious issue for any bank to get membership in the Bulge Bracket. As there are no precise criteria for getting into this group, it is always a matter of debate to include which bank.The lists of banks which are currently part of Bulge bracket are Bank of America Merrill Lynch, UBS, Credit Suisse, Barclays Capital, Morgan Stanley, Citigroup, JPMorgan Chase, Deutsche Bank and Goldman Sachs. This listing is based on Thompson Reuters League tables.
In early days, Wall Street firms mainly depended on Tombstone listing of banks. Large share allotments were achieved by banks in the top of the list. In the late 1960s, Bulge Bracket comprised of Morgan Stanley, First Boston, Kuhn, Loeb and Dillon, Read.The main benefit for a bank to be a part of Bulge Bracket is that they can earn a prominent spot on the security issue. Tombstone gives prominence in advertisement to those banks that come in the top list. Thus without extra cost, a bank will get a securing publicity while being a part of Bulge Bracket.