Crispin Murray the Head of Equities at BT Investment Management says "Macquarie has done well in the last couple of years, but we feel there is more opportunity there. The investment bank has re-positioned itself, shifting its business model away from transactions and more towards recurring annuity-style income streams – from their fund management, leasing and mortgage lending businesses – and this has given it a greater confidence in terms of its ability to deliver earnings. They've also reinforced the groups balance sheet strength, increasing capital and putting in place more secure funding, both from deposits and longer-term borrowings. The material improvement in the quality of that business is reflected in the share price, but we think there will be further tailwinds as Macquarie's large Asian capital markets business benefits from the tie-up between the Hong Kong and Chinese share markets." (AFR Subscribers only) (VIEW LINK)