Deutsche Bank shipping analyst Amit Mehrotra has confirmed in a note to clients that he and his team are still in business following the announcement of a massive restructuring within the firm.
“While we are clearly undergoing significant transformation of our business model, one thing that is not changing is the importance that DB [places] on equity research," Mehrotra said in an email Monday.
"To this end, my franchise remains firmly intact, along with the support of an institutional research sales infrastructure.”
The note was the first direct confirmation that Mehrotra’s research team has survived amid 18,000 job cuts at Deutsche Bank.
TradeWinds reported on Sunday that market sources said the bank’s shipping coverage would remain intact. Mehrotra could not be reached at that time.
Monday’s note from Mehrotra and three associates who work under him outlined a series of conference calls and events that Deutsche Bank will be hosting in coming days and weeks, including shipping clients. The team also covers other transport sectors such as trucking and logistics.
“We will continue to strive to produce disciplined and front-footed research, host corporate meetings, conferences, and thought-provoking events, and most importantly, we will continue to do our best to serve as partners to you,” Mehrotra told clients.
“Thank you for your support - past, present and future - and I and my team look forward to continuing our dialogue for many years to come.”
Deutsche Bank’s decision to maintain the course with shipping follows the withdrawal of several banks this year.
In late June, JP Morgan became the sixth bank in recent months to fully or partly dump shipping coverage, following on from Credit Suisse, UBS, Seaport Global Securities, the Maxim Group and fellow bulge-bracket firm Morgan Stanley.
At the same time, a handful of players have made a countercyclical move into the space, including BTIG, Berenberg Capital, B Riley FBR and Noble Capital.
