FICC fears well founded as first banks show their hands

By Owen Sanderson
16 Apr 2014

The first wave of the big investment banks reported first quarter numbers this week, showing that the promised dive in fixed income trading revenues was no idle warning, writes Owen Sanderson. JP Morgan, Citigroup, Bank of America Merrill Lynch and Credit Suisse all reported first quarter FICC or fixed income numbers down between 15% and 21%, as trading volumes and volatility slumped.

US fixed income figures from Morgan Stanley research show a 31% decline in mortgage-backed trading volumes, a 26% decline in agencies, and a 10% decline in US governments. Corporate volumes improved 14%, but overall average value traded in US fixed income dropped from $1.03tr to $873bn. 

The head of ...

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