A4 für Copyshop GB.indd - Bayerische Landesbank

Global Markets
The Global Markets Business Area bundles all primary and secondary money and capi-
tal market products: bonds, equities, money market instruments, foreign exchange
and energy and commodity derivatives. Global business activity is focused on Europe,
North America and Asia. In these markets, Global Markets advises and supports its tar-
get customers, which include savings banks, insurers, capital investment companies,
multinationals and corporate customers, as well as real estate customers.
Business development
Global Markets posted a satisfying result for 2004. The business area achieved this
largely by accurately predicting the trajectory of interest rates, exploiting the credit
margin trend, successfully managing the Bank’s position and marketing high-margin
products.
By developing new structured products, BayernLB was once again able to offer its
investors and customers high-yield solutions tailored to each particular risk profile.
The Bank reported high demand in the areas of financial engineering, structured share
issues for retail business and customer solutions for bond issues denominated in euro.
BayernLB’s strong reputation as a competent partner proved a key factor in the success
of client-driven business, with its twin offer of market-oriented prices combined with
high quality advice. BayernLB’s partners, the savings banks, were also able to use this
competence to their benefit for their own marketing activities.
Cross-selling potential was exploited to the full with multinational and SME customers.
This was also a result of the corporate franchise project carried out in tandem with the
Corporates Business Area.
In terms of organisation, the year continued to be marked by the restructuring of the
business area and the imminent withdrawal of the Gewährträgerhaftung (guarantee
obligation). London and Paris were fully integrated into Head Office structures, while
harmonisation of the technical platforms is right on target. The Toronto, Singapore
and Tokyo locations and the subsidiary Asia Pacific Ltd. were closed as planned. In
2004, BayernLB carried out a series of funding measures and steps aimed at preserving
liquidity. Thanks to these, the Bank will be in a strong position once the guarantee
obligation has ceased to apply for new liabilities.
Treasury
In order to guard against future liquidity risks and increased funding costs after the
withdrawal of the guarantee obligation and Anstaltslast (maintenance obligation), a
portfolio strategy was implemented for long-term funds on the liabilities side. In this
way, the Bank is ensuring that once the guarantee mechanisms no longer apply from
July 2005, it will still have access to sufficient liquidity for planned business activities at
all times.
BayernLB – our company
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places
tailored structured
products successfully