A second investment bank has parted ways with its shipping analyst and apparently dropped coverage of the sector in a climate of scarce deals and struggling shares.
The Maxim Group has let go of analyst James Jang just weeks after Seaport Global Securities split with Houston-based analyst Magnus Fyhr, sources told TradeWinds.
Jang had been writing research notes on companies including DHT Holdings, Eagle Bulk, Genco Shipping & Trading and Navigator Gas with the last coverage seen last week.
And on the investment banking side, Maxim had been sole book-running manager earlier this month on a follow-on equity raise by Greek bulker owner Seanergy Maritime Holdings, albeit for a tiny gross sum of $14.3m.
Maxim's fees on that deal were less than $1m.
Maxim has not made an official announcement of withdrawal of shipping coverage, but sources indicated that Jang has informed some clients of his departure.
A work phone number for Jang was no longer accepting calls on Monday.
Maxim and Seaport Global are just a couple of more than a dozen banks covering shipping.
And the traffic has not been a one-way street, as newcomers such as FBR Riley and BTIG have entered the sector in the past couple of years.
But as TradeWinds has reported, poor stock performance, limited trading liquidity and lower market capitalisations attached to listed owners have forced shipping analysts to take up coverage in adjacent sectors to preserve their livelihoods.
Analyst Michael Webber of Wells Fargo has told TradeWinds he takes a nuanced view of the trend.
“From a research perspective, both the capital markets and the job have certainly become more difficult," he said.
"Evolving your coverage model used to be a way to differentiate, and now it’s simply a requirement.”
Yet he added: “I don’t believe it’s quite as dour as some suggest.”
One thing Seaport Global and Maxim have in common is that they are smaller banks.
Maxim had worked mostly with smaller owners and was known as a specialist in niche areas such as blank-cheque public offerings.
Maxim senior managing director Lawrence Glassberg has been the lead investment banker in most shipping activity, market sources say.
