Asset management companies may be increasingly driven toward consolidation following
deal to buy
asset management unit Barclays Global Investors, according to a report from bond research firm CreditSights.
CreditSights analysts say declines in both stock and bond markets mean fewer assets to manage, meaning money managers may look to increase revenues through economies of scale.
Citing several press reports that
Bank of New York Mellon
was interested in buying BGI, CreditSights assumes it will now be looking around at other potential acquisitions.
ought to be at the top of Bank of New York's list, CreditSights argues, as it figures an acquisition could increase earnings by 15%.
are other possibilities that would give Bank of New York's earnings a slight boost or hurt it only slightly in the short term, CreditSights writes.
Less attractive targets, though still possibilities, include
SEI Investments Co.
Janus Capital Group
, CreditSights writes.
Targets the analysts say "may not be appealing from a financial perspective," include
T. Rowe Price
, as they would cause considerable earnings dilution.