Deutsche Bank - Historische Gesellschaft der Deutschen Bank e.V.

Developrnenl: of the Gmup
Development of governrnent
bond yields
Securities dealing in equities and fixed-income securities
The fixed-income sector was dominant in influencing the Group's
securities business last year. The decline in German interest rates and
the increasing strength of the Deutsche mark against other European
currencies attracted assets into the DM fixed-income sector, resulting
in a rise in income from customer dealing and proprietary trading. The
growing linkage of our European bond-dealing units also opened new
business opportunities.
Customer-oriented dealing in fixed income securities expanded sub-
stantially, with average daily turnover rising to DM 7 billion compared to
DM 2 billion in 1991 and approximately DM 4 billion in 1992, With foreign
issuers tapping the DM bond sector extensively in 1993, Deutsche Bank
served as a key intermediary between foreign issuers and domestic
investors, large and small.
Specialized trading activities such as securities lending, debt arbitrage
and repos contributed to the bank's success. We were also the leading
participant in interest rate derivatives traded on the Deutsche Termin-
börse (DTB), the German futures and options exchange.
Equity trading in 1993 was characterized by a sustained bull market. The
German equity index (Dax) climbed from around 1,530 to new highs ex-
ceeding 2,200. This resulted in increased foreign buying, starting at the
beginning of the year. During the Course of 1993, German retail and in-
stitutional investors followed, increasing their overall allocation to
equities. This led to increased turnover in equity trading, with a conse-
quent rise in own account trading and commission income.
Although German stocks continue to dominate the bank's equity acti-
vities, profits derived from trading and placement of international
equities grew. This will increase in importance in the years ahead.