Annual Report 2002 (pdf, 1319K) - WestLB

28
Trading
EUROBOND PRIMARY MARKET TAKES A BREATHER
79.4
36.9
43.8
270.8
499.5
136.7
52.2
32.7
389.9
509.3
2000 2001 2002
152.2
Other
35.8
Public-Sector
Clients
41.6
Supras
246.1
Companies
430.5
Banks/
Financial
Institutions
(€ billions)
Source: Capital
DATA Bondware
Trading operations and primary markets business
in interest rate, foreign exchange and capital
market products, which we have integrated
in the Global Financial Markets business unit,
were once again a key earnings contributor of
the Bank in 2002. Despite the global economic
slowdown and the uncertainty prevailing in
the markets, we strengthened our position
in numerous business segments. We further
improved our performance in syndicated loans,
corporate bond issuance and structured products.
Market conditions nevertheless made business
more difficult in, for example, individual foreign
exchange markets and in the secondary market
for credit products.
Last year we made a number of important
strategic decisions. We strengthened our
expertise in credit products in the Global
Financial Markets business unit through the
integration of the credit derivatives business.
A strategically important move was the founding
of the Covered Bond Bank in Dublin, which will
enable us to exploit the opportunities afforded
by the Irish covered bonds market and tap new
funding opportunities.
Interest Rate and Foreign Exchange
Business in the Liquidity Markets
Less clear interest rate trends and reduced
volatility in the core markets had a strong
influence on business with short-term interest
rate products in 2002. The limited trading
opportunities compared to the previous year
also had a negative impact on our key products,
including liquidity, FX forwards, short-term
derivatives and securities as well as repos.
Nevertheless, we once again demonstrated our
core competencies in the money markets –