Morgan Stanley Profit Beats Estimates as Bond Trading Gains – Bloomberg
July 22, 2016 \ 2 Comments
Full Article: Bloomberg
JPMorgan Chase & Co. kicked off earnings season last week by beating estimates as fixed-income trading revenue and loan growth jumped. Citigroup Inc. and Bank of America Corp. also exceeded estimates, while Wells Fargo & Co.’s results were in line with expectations. Goldman Sachs Group Inc. on Tuesday said net income surged 74 percent on gains in fixed-income trading and debt underwriting.
The article states: “Maybe on an annual basis we are closing in on a sustainable and predictable level” for fixed-income revenue, Kotowski said. “That would be a significant positive after years of grinding lower industrywide, but of course one needs more than one quarter to draw that conclusion firmly.” – Agreed – Small sample set from 1 market participant. Perhaps banks have re-balanced and found their sweet spot….time will tell. One thing for sure, Banks need to partner with platforms that have the interest of all participants in mind. This includes fee structures that are fair and protocols that maintain… Read more »
A positive report, and just having earnings stability going forward in this environment would be a big plus. However, since FNL is mainly focused on the top stories in the credit market, this statement gives plenty of pause, “Foreign exchange, commodities and securitized products were areas of strength within fixed income, particularly ahead of the Brexit vote, Chief Financial Officer Jonathan Pruzan said in an interview. Client activity has subsided since then, though foreign exchange could experience bouts of volatility, he said.”
No cheerleading yet for our dear sector, sportsfans.
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