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1 Ranked #1 in Announced M&A 17 of 21 years since GS’ IPO and #1 in Completed M&A 20 of 21 years 2 Source: Company filings; GS Investment Research 4Q19 estimates used for Deutsche Bank and Credit Suisse who have not yet reported FY2019 results; all revenues and estimates converted to USD 3 Activism market share per Factset SharkWatch

PDF Investor Day: Global Banking & Markets

includes GS MS JPM BAC C BARC CS DB UBS Slide 17: 1 Peers include MS (Institutional Securities segment) JPM (Corporate & Investment Bank segment) BAC (Global Banking and Global Markets segments) ROE for GS MS and JPM as reported ROE for BAC calculated as net income / allocated capital

PDF From shrinking risk to risk of shrinking: remove BAC from CL

  • Which is better GS or JPM?

    When the food price falls, one should choose GS. In the case of food price growth, JPM looks better. The BEN model contains a different defining CPI (O) which has a quite specific shape with a high-amplitude step between February and April 2009.

  • Are BAC shares correlated?

    There are highly correlated series and not correlating ones. Not surprisingly, the cross correlation coefficient between BAC and MS, which both have been suffering most after 2007, is 0.92. At the same time, the BAC share price series does not correlate with the series from other three banks.

  • How sensitive is JPM to food prices?

    The ratio of coefficients is -1.23 and -1.87, respectively. According to the ratio of share price to b1, JPM is less sensitive to food prices, i.e. one unit change in F forces a fall by about $14 in GS (~11%) and only $2 or 4% in JPM.

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