Wall Street’s biggest banks have spent years waiting for the end of a slump in fixed-income trading. It’s finally paying off.
Bloomberg News reports that Citigroup’s fixed-income revenue surged 35% to $3.47bn in the third quarter, and JPMorgan Chase posted $4.33bn from the business, $1bn more than analysts’ average estimates. Marianne Lake, JPMorgan’s chief financial officer, said Friday that the momentum continued into October.
That would be a welcome change from the past seven years. Revenue from trading fixed-income products -- typically bonds, currencies and commodities -- tumbled to $70bn in 2015 at the world’s biggest investment banks, about half the 2009 level, according to data compiled by financial-research firm Coalition Ltd. U.S. banks have been counting on a rebound, as European rivals such as UBS retreated or cut deep to save money.
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