Attrition of shipping’s equities analysts is both cyclical and structural
The recent spate of coverage cancellations among investment banks, the latest coming from JP Morgan on Friday, is a result of both a cyclical shrinkage of investment funds, which would naturally correct when an upturn arrives, and structural changes that likely mean this is part of a long-term contraction
Higher capital requirements, more selectivity from buy-side investors and electronic trading are all lowering commissions for investment banks