A changing global market has compelled Elif Bilgi Zapparoli to diversify her client's investments.
The era of liquidity is over, Zapparoli said, and the rest of the 2020s will likely carry greater risk for investors, who must contend with geopolitical tensions, persistent inflation and interest rates both higher and more susceptible to change.
"The volatility of the underlying macro factors changed dramatically," Zapparoli said.
In response, Zapparoli is focused on strategies such as interest rate and foreign exchange hedging that had been a small part of client portfolios. Bank of America Securities global commercial bank reported its rates and currencies hedging platform growing 15% in 2022.
Zapparoli also responded to a more high-risk environment by steering clients to safer, investment-grade debt. One of her biggest investment-grade deals was advising biotech company Amgen's $11 billion bond issuance. The debt offering was part of Amgen's financing maneuvers in a bid to buy Horizon Therapeutics.
And Zapparoli assisted auction house Ritchie Bros. in executing a $4 billion loan and bond transaction as the company sought the financing to purchase auto retailer IAA.
In perhaps the most high-profile deal Zapparoli advised upon, BofA Securities was joint bookrunner and global coordinator of Porsche's initial public offering last October. The IPO valued the German automaker at $73 billion and raised the equivalent of over $9 billion.
Zapparoli described the Porsche deal as notably complex. It was a spinoff from Volkswagen, and the company offered outside investors 911 million shares of stock, a nod to its 911 car model.
"Certainly, it required a lot of preparation. I don't remember another deal where we had that many meetings," Zapparoli said.
Zapparoli also helped coordinate the IPO of Nextracker, a Fremont, California-based business that sells solar trackers and energy management software. The IPO raised $638 million.
Another change for Zapparoli in 2022 was a clearly welcome one — a decline in COVID-19 cases, which allowed her to visit teammates and clients around the world again. For example, Zapparoli visited BofA Securities' Hong Kong office for the first time since 2019.
"For me, the most important thing is to see my teammates," Zapparoli said, and assure them that they are part of a common mission.
Zapparoli grew up in Turkey, and first arrived in the U.S. for college. Later, after four years at Goldman Sachs, Zapparoli returned to Turkey where she started at investment bank and broker dealer EFG Istanbul Securities.
Zapparoli also worked in Dubai and Hong Kong before she returned to the U.S. in 2018, taking a position at Bank of America Merrill Lynch.
Zapparoli said that her Turkish background and international experience enhances her empathy for others facing challenges. For instance, as the world deals with inflation levels not seen since the early 1980s, Zapparoli can draw on her experience in Turkey. "Coming from a country that has had very high inflation for a very long time actually gives me an opportunity," she said.
One outlet for Zapparoli's empathy is creating a "Power of 10" group for her team, where colleagues — and especially junior bankers — feel comfortable asking questions and expressing concerns. Zapparoli anticipates these group sessions as a forum to energize and nurture future banking leaders.
