Euro Banks Still Can’t Value Their Own Equity Research; Subscriptions Range From $50k – $600k A Year

Jon Alternative Media, Blogosphere, Government

Literally no one knows the true ‘value’ of research, not even the investment banks that are selling it. Up until now, equity research has been treated as a ‘freebie’ given away to institutional clients in return for trading commissions but that is all about to change thanks to the European Union’s MiFID II regulations, which require asset managers to separate trading commissions from investment-research payments.
Unfortunately, at least for the Investment Banks of the world, while the cost of generating equity research may be substantial, it turns out that the true ‘value’, as defined by institutional clients’ maximum willingness to pay for reports, may be much less. Which is shocking given the creativity required to constantly generate new variations of daily reports politely suggesting that you “Buy The Fucking Dip.”

This post was published at Zero Hedge on Apr 19, 2017.