The Bank of New York expects to take its share of the corporate trust market to number one by acquiring JPMorgan Chase's corporate trust business, in a combination projected to total $8 trillion of debt issues. And, according to Karen Peetz, executive vice president and head of corporate trust at BNY, the purchase will sharply boost BNY's client base, particularly within the CDO sector, where the bank will press towards a near-term goal of 60% market share.
JPMorgan's CDO and international trustee services were the key businesses BNY was after, Peetz said. JPMorgan's share of the CDO market, at 45%, is about 20 times that of BNY's. In addition, JP Morgan holds a 32% market share of Europe, the Middle East and Africa combined. BNY's revenue from its CDO trustee business is expected to account for 20% of the bank's total post-acquisition, Peetz said.