And at first glance it makes for comforting reading: “Spreads in Europe to remain tight,” says Lehman Brothers, while ABN Amro forecasts a benign outlook in 2006. How does this play out for fixed income, which has provided the bread and butter for many investment banks for the past five years, even though M&A and equities have returned to the fore in 2005?
Setbacks such as General Motors or Delphi did not stop the majority of banks enjoying another stellar year. Almost all have reported record profits and fixed income/credit has been at the forefront...
