Top-ranked US banking analyst Mike Mayo will join CLSA’s U.S. Broker-Dealer affiliate Calyon Securities (USA)
Hong Kong - Thursday, 26 March 2009 - CLSA Asia-Pacific Markets, Asia's leading independent brokerage and investment group, is actively broadening its brand recognition in the US, through its U.S. Broker-Dealer affiliate Calyon Securities (USA) Inc. (“CSI”), with several important hires in a move to expand its domestic U.S. sales and research teams.
CSI has signed top-ranked US banking and financial analyst Mike Mayo and a team of analysts and associates who will initiate coverage of 30-40 US financial stocks representing approximately 20% of the total US market capitalisation by the year end. The move follows CLSA's recent launch into Australia, and the hire of Australia's No.1 ranked banking analyst Brian Johnson.
A long-time bear on US financials, Mayo was named in August 2008 one of “8 Who Saw the Credit Crisis Coming” by Fortune and CNN. As early as 1999 he advised investors to sell US bank stocks which he believed relied too heavily on asset-backed securities, and should home prices fall would present "a self-fulfilling prophecy of lower home prices and lower collateral, not to mention unique political fallout."
Mayo joins Calyon Securities (USA) Inc. in mid-April following two years at Deutsche Bank. He began his career at the US Federal Reserve in 1988 and over the past two decades has worked for UBS, Lehman, Credit Suisse and Prudential.
CLSA Chief Executive Officer Jonathan Slone said that while the expansion of the CLSA brand into the US market had been planned for some time, the rapid collapse of the markets has provided access to top-ranked talent looking for an alternative to the investment-banking model and has accelerated CLSA’s expansion.
“As the investment banking model continues to implode and the banks effectively become SOE’s, investors will increasingly demand partisan, unconflicted analysis from research-driven brokers who have minimal credit risk and who do not prop trade. This is the model we have championed the past twenty-two years. We know it works,” Slone said.
Managing Director, Head of Equities, Calyon Securities (USA) Inc. New York, Jay Plourde said the move by Mayo and his team to CSI fits naturally with the independent, thought provoking research of the CLSA brand, where anti-consensus calls are the order of the day.
“The analysis of US equities through an Asian lens; examining the impact and influence of Asia’s economies on US industries, provides US investors an alternative view on domestic companies and benefits CLSA’s Asian clients investing into US equities through CSI.” Plourde said.
The CLSA Group’s goal is to become one of the top-five ranked research houses in the US.
The build-out of the US equities research team through CSI, will see the hire of a highly regarded semi-conductor analyst and associate and a team of metals and mining analysts over the coming weeks, bringing the total number of analysts to 15. Sales teams will also be expanded.
Under Mayo, the US financial research team will complement the CLSA Group’s existing banking coverage led by Daniel Tabbush who downgraded Australia’s top-four banks to sell in a report entitled Australia’s Autumn in May 2008, nine months prior to CLSA opening its first office in Australia on January 19, 2009.
Through CSI, Mayo joins ranks with the CLSA Group’s established team of often contrarian analysts, known to hold conflicting views, that includes equities analyst Christopher Wood, global markets analyst Russell Napier, head of economic research Eric Fishwick and China macro-strategist Andy Rothman.
Voted Asia’s No.1 Equity Strategist by Institutional Investor (2008, 2007, 2005, 2004, 2003), The Wall Street Journal (August 2007) dubbed Christopher Wood ‘the man who saw it coming’ for sounding the sub-prime alarm in October 2005. However, as early as 6 February 2003, Wood wrote in Greed & fear: “The American financial system remains a giant laboratory experiment in securitization that has not yet been properly stress-tested on the downside.” A long term bull on gold, Wood believes the US dollar standard is on borrowed time and this will push the gold price to S$3360/oz by the end of 2010.
Author of the highly respected history of bear markets, Anatomy of the Bear, Russell Napier is a UK based consultant who provides regular analysis of the markets for CLSA’s global clients. Eric Fishwick and Andy Rothman are known amongst investors for their differing views on China’s GDP forecast.
US institutional investors have consistently voted CLSA the top research and sales brokerage for Asian equities* and the group believes the time is right for it to expand its unique brand of analysis to US stocks, many of which depend on Asian manufacturing and consumers for continued growth.
CLSA is also voted the top Asian brokerage for most useful conferences and seminars# and in January 2008, as US investors were beginning to comprehend the potential for an unprecedented deleveraging of global credit markets, CLSA launched its unrivalled Investor Forum product in the US. The second Asia Investors’ Forum was held in February 2009 in Las Vegas and attracted more than 1000 US fund managers and senior executives of Asian corporations, to more than 1500 meetings and presentations from industry leaders including Robert Shiller, Professor, Yale University; Frank Luntz, Author of Words that work; and T Boone Pickens, Chairman & CEO, BP Capital.
* No.1 Asian Equity Research Share (2007, 2008); No.1 Research Sales and Trading Ability (2007)
- Greenwich Associates Survey for US Equity Investors in Asian Equities
# No.1 Most Useful Conferences & Seminars (2006, 2007 & 2008)
- Greenwich Associates Survey for US Equity Investors in Asian Equities
- end -
Media inquiries please contact:
About Calyon Securities (USA) Inc.
Calyon Securities (USA) Inc. offers brokerage and investment banking services. The firm provides mergers and acquisitions, valuations, debt and equity financing, leveraged and management buyouts, public offerings, privatization advice, due diligence, and transaction structuring services.
It also offers investment research, equity and debt trading, and strategic advisory services. The firm is based in New York City with additional offices in Chicago, Dallas, Houston, and San Francisco. It is a subsidiary of Calyon.
Calyon Securities (USA) Inc. (“CSI”) is a licensed U.S. Broker-Dealer affiliated with CLSA.
About CLSA Asia-Pacific Markets
CLSA Asia-Pacific Markets is Asia’s leading, independent brokerage and investment group. The company provides equity broking, capital markets, merger and acquisition, and asset management services to global corporate and institutional clients.
Renowned for service excellence, product innovation and award-winning market intelligence, CLSA has built its reputation on unrivalled equity research and economic analysis which is consistently ranked the best in Asia.
CLSA is one of Asia’s largest independent equity brokers and one of the world’s largest agency brokers. The group’s investment banking services include M&A advisory, equity transactions and public offerings. Alternative asset management is offered through ten Asia-based funds under CLSA Capital Partners.
Founded in 1986 and headquartered in Hong Kong, CLSA has 1,350 dedicated professionals located in 15 Asian cities, plus Dubai, London, Port Louis (Mauritius) and New York. CLSA’s major shareholder is France's Credit Agricole, which merged in 2003 with Credit Lyonnais. CLSA enjoys substantial staff ownership which contributes to its independent stance and operations.
Additional information can be found on the website: www.clsa.com