Reuters reports that Co-Chief Executive Anshu Jain, speaking at an investor conference in London on Wednesday, said: 'We currently anticipate debt sales and trading revenues in the third quarter to decline significantly from last year'.
Jain blamed the lack of market activity for the weaker revenues. Last year trading had received a boost from stimulus measures by the European Central Bank, which made a pledge to do 'whatever it takes' to safeguard the euro, a statement that led markets to rebound.
The current slowdown in bond market trading has been blamed on expectations that the U.S. Federal Reserve would begin to unwind some of the extraordinary stimulus measures such as a bond buying programme.
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