Have the mega-buck years of bond and interest rate trading gone for good, or will normal service resume after an ugly 2013 ?
Reuters reports that that's the question facing investment bank chiefs as they try to squeeze costs and improve returns. Some are clinging to the hope that diving revenue from a "complex, messy business" will be temporary, and they need to keep trading teams together for when the market recovers.
However, many are already changing, and the likes of Deutsche Bank, Barclays and Morgan Stanley look set to make deeper cuts to their fixed income divisions to deal with weak volumes and tough regulation.
Investment banks are reshaping themselves to increase their profitability, and the trading desks that buy and sell interest rate and credit products are under most scrutiny.
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image: © Jake Barnes