JP Morgan has joined what has become a stampede of investment banks out of shipping coverage, telling clients today that it is parting ways with the sector and with equity analyst Noah Parquette.
JP Morgan becomes the sixth bank in recent months to fully or partly dump shipping coverage, following on Credit Suisse, UBS, Seaport Global Securities, the Maxim Group and fellow bulge-bracket firm Morgan Stanley.
The loss of interest in shipping equities has created a climate of frustration and tension for analysts still in their positions. In large part they have been forced to expand coverage into adjacent sectors like LNG, energy and other transportation in order to stay relevant.
TradeWinds reported on Friday that the culling of analysts might not be over, as at least one significant bank was reportedly within days of dropping coverage. JP Morgan's announcement to clients today was the other shoe dropping in that scenario.
Parquette was covering names in tankers, dry bulk, LNG, LPG and containerships. He had been with JP Morgan since April 2015. Prior to that, he had worked at Canaccord Genuity, the Maxim Group, Global Hunter Securities and Cantor Fitzgerald.
