Pages

Wall Street's Trading Desks Are Quiet These Days

Your Message Subject or Title
  MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE
 
 
Chart of the Day
 
Wall Street's Trading Desks Are Quiet These Days

Wall Street's CEOs and CFOs are out preparing investors for what's amounting to be a very ugly quarter for trading revenues. We've already heard from JPMorgan and Citigroup.

On Wednesday, Goldman Sachs' Gary Cohn addressed the same problem at the Sanford C. Bernstein Strategic Decisions Conference.

"As we consider headwinds, volumes in a number of fixed income markets have been under significant pressure in 2014: FX volumes are down 45% versus 2013, mortgage-backed securities volumes are down over 20%, and corporate bond volumes are down almost 15%," he said.

"Naturally, we’ve been hearing a number of questions about the driver of these declines, including: macro factors, like fiscal or monetary policy, regulation, or the low-growth global economy," he continued. "We believe all play a role, but in our day-to-day business, the most significant factors are economic in nature."

Cohn also addressed the fact that market volatility has been extremely low. Here's Cohn: ""You can see the impact clearly in the data: the VIX is running almost 40% below its 10-year average; currency volatility is also roughly 40% below its 10-year average – in fact, the euro, in the last 2 months, has experienced its narrowest monthly trading range since its inception 15 years ago; interest rate volatility is running more than 35% below its 10-year average, with the US 10-year trading in a narrower band over the past 3 months than any time period over the past 35 years."

In a nutshell, Cohn explained that low volatility "discourages hedging and delays opportunistic investing."

And if clients aren't trading, then Wall Street brokers and dealers can't collect fees.

Read »


Also On Markets Today:
Advertisement

cotd stocks s&p high

Fewer And Fewer Stocks Are Making New Highs
cotd bianco roe

CHART OF THE DAY: The Entire Debate Over Record-High Profit Margins Has Pivoted
cotd

A Growing Number Of American Homes Are Now 'Obsolete'
Share this: Facebook Facebook Twitter Twitter Digg Digg Reddit Reddit StumbleUpon StumbleUpon LinkedIn LinkedIn
Follow us on Facebook Follow us on Twitter
The email address for your subscription is: nguyenvu1187.love@blogger.com
Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed
Business Insider. 150 Fifth Avenue, 8th fl, NYC 10011
Terms of Service | Privacy Policy



Share the latest business news with your network:

Share on Facebook
Share on Twitter
Share on Linkedin
Share via email


The email address for your subscription is: nguyenvu1187.love@blogger.com

Manage your email preferences   |   Unsubscribe

Business Insider RSS Feed   |   Terms of Service   |   Privacy Policy

Business Insider. 150 Fifth Avenue, 8th fl, NYC 10011
Sailthru

0 nhận xét:

Post a Comment