Risk magazine announced its 2007 global award winners at a gala dinner recently, recognizing the institutions that have responded to market conditions by structuring solutions that have best met the needs of their clients.
Derivatives Research House of the Year – accepted by Peter Allen, head of European Equity and Credit Derivatives Strategy.
J.P. Morgan won many plaudits from clients for the quality of its research and overall service. Stephen Ronnie, senior portfolio manager at fixed-income managers Pimco in Munich, said, "The derivatives research is consistently leading edge. It provides the only pieces of research I would take home weekends to read." Other than the quality of the research itself, the other popular aspect of J.P. Morgan's offering for end-users is its client service. It is seen as receptive, quick to respond, and providing excellent access to analysts.
Energy Derivatives House of the Year – accepted by Beau Taylor, head of Global Energy.
After outstanding success for 2006, two principal transactions marked the entrance of J.P. Morgan as a major player in the energy business, Tennergy and Amaranth. J.P. Morgan was able to provide expertise and competitive pricing on a deal it put together for Tennergy Corporation, a Tennessee-based municipal energy firm. By being creative in designing a deal structure that more than met the clients’ needs, the $746 million deal is likely to save Tennergy about $30 million to 35 million over its 10-year lifespan. Amaranth, a Greenwich-based hedge fund, was the energy deal of 2006 and a major coup for J.P. Morgan's energy business. When Amaranth Advisors began to get into difficulties in the fall of 2006, they were looking to sell their natural gas positions. Together with Citadel, a Chicago-based hedge fund manager, J.P. Morgan proposed taking on 100% of Amaranth's energy exposures, including natural gas, oil, power, basis trades, exotics and even bio-fuels. The deal proved to be very lucrative, but there was a more subtle impact too. According to Taylor, "We now have the credibility that comes with pulling off this highly complex deal, in a tight timeframe, in open competition. That has opened up doors with clients."