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15 handpicked stocks

Wall Street Banks: HSBC Retreat Amid Market Risks

HSBC is cutting its U.S. debt capital markets team, reflecting a strategic withdrawal from certain Western financial markets to reduce costs. This creates an investment opportunity centered on U.S.-focused investment banks and financial firms that stand to gain market share from the retreat of global competitors.

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Author avatar

Han Tan | Market Analyst

Published on February 20

Your Basket's Financial Footprint

The basket's total market capitalisation is $NaN and is anchored by large-cap stocks, which generally give it a more stable, lower-risk profile.

Key Takeaways for Investors:
  • Large-cap dominance generally implies greater stability, lower volatility and closer tracking of broad market moves.
  • Consider using this basket as a strategic core holding, rather than a speculative, high-risk trade.
  • Likely to deliver steady, long-term appreciation rather than rapid, short-term explosive gains.
Total Market Cap
  • GS: $274.93B

  • MS: $276.03B

  • JEF: $10.99B

  • Other

About This Group of Stocks

1

Our Expert Thinking

As major international banks like HSBC withdraw from U.S. debt capital markets, domestic financial institutions are positioned to capture greater market share. This strategic shift creates opportunities for established U.S. banks and financial services firms that maintain strong domestic operations and can absorb clients and deal flow from retreating competitors.

2

What You Need to Know

This group includes investment banks, asset managers, brokerages, and financial service providers across the value chain. These firms operate primarily in the U.S. market and have the infrastructure to handle increased business volumes. The theme focuses on companies that can directly benefit from reduced competition in debt underwriting, advisory services, and client relationships.

3

Why These Stocks

These stocks were handpicked by professional analysts based on their strong U.S. market presence and ability to absorb market share from international competitors scaling back operations. Each company has established client relationships, proven expertise, and the operational capacity to benefit from this competitive landscape shift in financial services.

Why You'll Want to Watch These Stocks

🎯

Market Share Opportunity

As major competitors withdraw from U.S. markets, these firms are positioned to capture increased deal flow and client relationships that could boost revenues significantly.

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Reduced Competition

Fewer players in the debt capital markets means less competition for lucrative underwriting deals and advisory mandates, potentially improving profit margins for remaining firms.

Strategic Positioning

These companies have strong domestic operations and established client bases, making them natural beneficiaries when international banks scale back their U.S. presence.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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