Which banks will become BBs in the next few years (or are already considered BBs)?

Based on the most insightful WSO discussions, here's the breakdown:

1. RBC (Royal Bank of Canada):

   • RBC is often considered a "lower-tier BB" by some due to its strong presence in North America and Europe.
   • Analysts argue that RBC's league table performance is already competitive with traditional BBs, but its reputation and perception still lag slightly behind.
   • Expanding its APAC deal flow is seen as the next critical step for RBC to solidify its BB status.

2. Jefferies (JEF):

   • Jefferies is a strong player in the middle-market space and has been making strides in competing with BBs.
   • However, the term "bulge bracket" is tied to legacy and tradition, which Jefferies lacks compared to RBC or Wells Fargo.
   • While Jefferies is growing, it is less frequently mentioned as a BB contender in WSO discussions compared to RBC or WF.

3. Wells Fargo (WF):

   • WF has been gaining significant traction in investment banking, particularly in M&A and DCM, and has consistently ranked in the top 10 for IB fees.
   • The bank has been poaching top talent from firms like Credit Suisse and investing heavily in its CIB arm.
   • However, WF's franchise is still largely US-based, which limits its ability to fit the traditional BB definition of a global full-service bank.

Likely Outcome:

• RBC appears to be the frontrunner to achieve undisputed BB status first, given its strong league table performance and established presence in North America and Europe.
• WF is a close contender but needs to expand its international footprint to meet the traditional BB criteria.
• JEF is less likely to achieve BB status in the near term due to its middle-market focus and lack of legacy BB characteristics.

Your bet on RBC seems well-aligned with the prevailing sentiment on WSO!

Sources: Is Wells Fargo poised to become the next BB?, Is Wells Fargo poised to become the next BB?, What Is The Next Bulge Bracket Bank or Will There Ever Be Another Bulge Bracket Bank?, WF IB VS BMO IB, Next next bulge bracket?