Bond Trading Slumps at US Banks as Rate Volatility Hits FICC Revenue
C sits 29% above its 52-week low of $95.
Summary
Q3 bond trading weakened across major US banks as interest rate volatility curbed client activity. Morgan Stanley FICC revenue fell 7%, JPMorgan 4%, Bank of America 17%, while Goldman Sachs was flat. Citi was the outlier with 4% growth, driven by forex and spread products. Bank of America's unrealized losses on its bond portfolio jumped to $109 billion from $85 billion. Equity trading desks offset the weakness, with Goldman up 72% and Morgan Stanley up 41%. This follows Citi's Q3 earnings beat reported yesterday, but the broader industry trend shows pressure on fixed income businesses.
At the time of this announcement, C was trading at $122.45 on NYSE in the Finance sector, with a market capitalization of approximately $205.4B. The 52-week trading range was $95.00 to $147.96. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.