RBC Capital Markets's new four-strong banks research team has initiated coverage of investment banks for the first time, setting out a cautious outlook on the sector while slapping an underperform rating on US banks Goldman Sachs and Morgan Stanley.

The Canadian bank this morning began its coverage on the six largest global investment banks: Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley and UBS, having hired Fiona Swaffield, head of bank research at Execution Noble, and three of her colleagues in December last year.