Bond traders are crushing it
Thomson Reuters
JPMorgan and Citigroup both announced first quarter earnings on April 13, posting better than expected trading revenues.
At JPMorgan, markets and investor services revenue, at $6.5 billion, were up 13% year-on-year, with the fixed income, currencies, and commodities business enjoying a strong start to the year. Revenues in that business were up 17%, with the bank citing strength in securitized products, rates, and credit.
In February, the bank had said it expected only a modest bump in trading revenues. On a call with the media, CFO Marianne Lake said that while January had been strong, February was quiet with very low levels of volatility. "That changed to a degree in March," she said.
At Citigroup, fixed income revenue totaled $3.62 billion, up 19% year-over-year, ahead of the expectation for $3.52 billion. That's the highest level of fixed income revenues in three years. Citigroup cited strength in both rates and currencies and spread products.
The results set the scene for a strong year for fixed income, currencies and commodities. That business has struggled through the past few years in a period of increased regulation and reduced volatility.
However, 2016 saw a rebound in industry revenues. It looks like 2017 may continue that trend.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Shubman Gill to play 100th IPL game as Gujarat locks horns with Delhi today
- Realme Narzo 70, Narzo 70X 5G smartphones launched in India starting at ₹11,999
- Indian housing sentiment index soars, Ahmedabad emerges as frontrunner
- 10 Best tourist places to visit in Ladakh in 2024
- Invest in disaster resilience today for safer tomorrow: PM Modi