The biggest and fatest-shrinking bonus pots.
Bond traders at JPMorgan and Citigroup face the fastest-shrinking bonus pools on Wall Street this year, while Morgan Stanley investment bankers head for the greatest gains.
JPMorgan’s fixed-income trading revenue fell 14 percent to $10.6 billion in the first nine months of 2014, the steepest drop among the five largest Wall Street banks, according to data compiled by Bloomberg for the first half and analyst estimates for the third quarter.
By contrast, Morgan Stanley probably had the biggest increase in revenue from advising on mergers and underwriting stock and bond deals, the estimates show.
Wall Street thoughts turn to bonuses this month as firms report third-quarter results, giving a sense of how they’ve done for most of the year and how much they will allot to bonus pools. While markets lulled by Federal Reserve intervention have crimped trading, investment bankers have fared better amid a surge in mergers and issuance of debt and stock.
'This will be a good year for investment bankers, and the largest banks have figured out a way to compensate their best individuals,' said Devin Ryan, a New York-based analyst at investment bank JMP Group Inc. In trading, 'if returns are still challenged, and in 2014 they will be, that will impact where the compensation pools are for those businesses.'
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