Canadian companies and institutional investors see RBC Capital Markets as the best corporate-investment bank in Canada, according to new research from Greenwich Associates.

Canadian banks haven’t been immune to the global financial meltdown, but Greenwich says that their past restraint concerning many risk-based businesses has left them in a relatively strong position from which to weather the current storm. Canadian banks for the most part have remained focused on the client-based mainstays of corporate finance, investment banking and capital markets coverage.

“As a result of past strategic choices on the part of the domestic banks, companies and institutions in Canada are navigating the current turmoil with the help of a group of big Canadian banks that almost all get very high marks for quality in essential corporate finance and capital markets businesses,” says Greenwich Associates consultant Peter Kane.

Greenwich’s research identifies the banks that companies and institutions see as the best in 22 categories falling into three main areas: investment/corporate banking, equities and fixed income. It measures the quality of service that banks and broker-dealers provide to institutional investors across sales, trading and research, including foreign exchange and commodities trading.

Based on its research, Greenwich reports that RBC Capital Markets is named as a “Quality Leader” in 12 categories spanning corporate banking, investment banking and the debt and equity capital markets. Scotia Capital, which is named as a Quality Leader in seven categories, ranks second; followed by BMO Capital Markets, which receives six designations. CIBC is named as a Quality Leader in four categories; TD Securities is cited as a Quality Leader in two.

“Canadian institutional investors see RBC Capital Markets as the nation’s best fixed-income dealer,” says Greenwich Associates consultant Woody Canaday. “The bank is named as Canada’s Quality Leader in Overall Fixed Income, Trading, Sales and Relationship Capital. The only fixed-income category in which RBC does not take top honors is Fixed Income Research, in which Canadian institutions name BMO Capital Markets as the Quality Leader.”

Companies also name RBC Capital Markets as the country’s single Quality Leader in Canadian Equity Capital Markets Coverage, it reports.

“In the other corporate categories of Debt Capital Markets Coverage and Mergers & Acquisitions Coverage, Canadian companies see the top domestic banks — including BMO Capital Markets, CIBC World Markets, RBC Capital Markets, Scotia Capital, and TD Securities — as tightly grouped in terms of capabilities, with most if not all providing a very high level of quality,” says Greenwich Associates consultant Jay Bennett. “Institutional investors have the same view of their providers in Canadian equities. Institutions name BMO Capital Markets, RBC Capital Markets and Scotia Capital as Quality Leaders in Canadian Equity Research/Analyst Service, Equity Sales and Equity Trading.”

IE