Banks with a focus on trading are seeing better results than those with traditional lending offerings.
While many of the nation’s largest banks saw their profits plunge during the second quarter, trading revenues have surged, enabling banks to maintain strong capital positions and better position themselves to weather the coronavirus pandemic.Andrew Burton/Getty ImagesInvestors have piled into the stock market amid unprecedented volatility this year resulting in a major boost to trading revenues at the nation’s major banks.
“That will allow them to protect future earnings along with capital markets issuance—and that business has been booming,” says Lapey. Today’s markets, by comparison, have remained “very liquid” thanks to massive support from the Federal Reserve, which means high yield and debt issuance that is good for banks, says Lapey. Banks are “much better positioned than last time around,” he agrees.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Morgan Stanley profit jumps 45% on trading boomMorgan Stanley posted a better-than-expected surge in quarterly profit on Thursday, driven by strong trading gains as the coronavirus pandemic drove record swings in global financial markets.
Read more »
U.S. Stock Futures Rise After Promising Vaccine StudyU.S. stock futures rise as investors cheer promising results from a study of Moderna’s experimental coronavirus vaccine
Read more »
Morgan Stanley posts record profit on trading boomMorgan Stanley posted a record quarterly profit on Thursday that blew past analysts' expectations as another of Wall Street's big investment banks gained from huge swings in financial markets due to the coronavirus crisis.
Read more »
Goldman Sachs is set to report second-quarter earnings — here's what the Street expectsExpectations for Goldman are running high after JPMorgan Chase and Citigroup posted strong trading and advisory results that helped the banks beat profit estimates for the second quarter.
Read more »
Goldman profit blows past estimates on trading surgeGoldman Sachs Group Inc's trading revenue doubled in the second quarter, driven by big swings in stock and bond markets since March, helping the bank beat estimates for quarterly profit by a wide margin.
Read more »