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Fee models start to bite

Banks see profits in corporate broking but are unsure how to harvest them

Is it better to pay for your drinks by the round or run up a tab that you pay off at the end of the night? Corporate broking faces a similar dilemma. Should corporate brokers charge clients an annual retainer or offer the service for free in the hope of winning underwriting and M&A business at a later date?

Investment banks certainly seem to believe that corporate broking is a useful string to have to their bow.

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