Bloomberg News reports that fixed-income and equities trading revenue will drop about 20% from a year earlier at the company amid 'a continued challenging environment and lower client activity levels', JPMorgan said yesterday in its quarterly regulatory filing.
CEO Jamie Dimon, 58, was the first head of a major U.S. bank to warn investors this year that trading was down, saying in February that revenue had fallen 15%. Continued weakness has spurred analysts including Chris Mutascio of Stifel Financial Corp.’s KBW unit to ponder whether the drop in fixed-income trading might persist through 2014 and beyond.
'It’s an industry phenomenon, and other banks allow JPMorgan to grease the skids for them so there can be a gentle letdown process', said Charles Peabody, an analyst at Portales Partners.
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