Nordea, the Nordic investment bank, has outsourced the production of all company research to Standard & Poor's, the ratings agency and independent equity research provider, in what is believed to be the first deal of its kind.

Julien Hardwick, European head of equity operations at Standard & Poor's said: "The market for equity research is labouring with over-capacity, continuing questions about quality, increasing regulatory constraints and declining margins. Many banks are taking a long hard look at their research function and we expect others to follow in Nordea's path."