Cantor Fitzgerald sees opportunities - will continue to hire

Continuing to buck the trend.

Cantor Fitzgerald’s Shawn Matthews sees the fixed-income landscape only getting worse for the largest banks in the coming years, creating opportunity for securities firms like his.

Bloomberg News reports that the biggest banks have tied their debt operations to their underwriting business, which means profits will slump when rising borrowing costs slow issuance from its record clip, the chief executive officer of Cantor Fitzgerald’s brokerage arm said last week in an interview at its New York headquarters.

'If you’ve built a business that is driven by the earnings power of the new-issue marketplace, and that goes away, that’s one key leg of the stool', Matthews said. 'I think their balance sheets go down again significantly from where they are today. Customers will have to look for players like us'.

Banks such as JPMorgan and Citigroup have already reduced the amount of their own money they’re willing to use for trading in the face of new regulations, making it more difficult for investors to buy and sell on demand. Matthews said on Bloomberg Television this month that he’s on a hiring spree to bolster his business of making markets for clients.

To access the complete Bloomberg News article hit the link below:

Matthews See Banks’ Bond Woes Worsening in Cantor Boon

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