JPMorgan - Bond trading boom coming to end

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Revenue at the world’s biggest investment banks is likely to drop in the second quarter of this year as a rebound in fixed-income trading comes to an end, JPMorgan Chase analysts wrote.

Bloomberg News reports that total revenue from investment banking and trading at five of the world’s biggest investment banks will probably fall 2 percent to about $18.1 billion, driven by a 5 percent drop in fixed-income trading and a 6 percent slide in equities, analysts led by Kian Abouhossein wrote in a note to clients Tuesday.

Barclays will probably post the biggest drop among the five banks, while Morgan Stanley is likely to report a gain, according to the note.

Some of the world’s biggest banks have relied on a rebound in fixed-income trading to drive results over the past year as clients moved to make more wagers on corporate bonds and the direction of interest rates. A decline in bond-trading could compound the challenges already facing some European lenders that are pushing through overhauls, from Deutsche Bank to Credit Suisse.

Hit the link below to access the complete Bloomberg News article:

Banks' Bond-Trading Boom to End This Quarter, JPMorgan Says

Goldman Sachs Sues Two Ex-Executives Over Client Poaching

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