The firm that won the quarter in trading

A wave of financial results from Wall Street last week brought with it a resurgence of revenues from fixed-income trading, thanks to a renewal of volatility in bond and currency markets.

The rising tide lifted all trading desks, but the biggest winner was Goldman Sachs, which saw fixed-income revenues rise 74% from a year earlier, to nearly $2.2 billion.

Goldman has doubled down on trading as competitors have stepped away from the risky business.

As the chart below shows, the gain for Goldman in the third quarter followed a 44% drop in revenues a year earlier, after the bank found itself on the wrong side of a spike in interest rates.

Still, while the restiveness in financial markets may continue, trading appears unlikely to return to the days when it supercharged profits at many banks.



home our picks popular latest obsessions search