A year that started with such promise is headed for a sour ending.
Traders of bonds, currencies and commodities are facing a shrinking year-end bonus pool after their revenue in the first nine months slumped 11% to $32 billion at the four biggest U.S. investment banks, according to results announced by the firms this week. That business started the year on decent footing, stumbled in the first half and then tumbled in the third quarter. Meantime, equities revenue surged 18% to $16.7 billion.
While that leaves equities traders in a relatively better position, the bond bust isn’t good for anyone working in markets divisions, because it still puts pressure on banks to push down compensation and consider other cost-saving measures.
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