Higher volatility in the first two months, driven by uncertainty about the pace of Federal Reserve interest rate rises this year and next, has been exactly the kind that banks like best: sufficient to provoke a revival in volume of trades among clients taking divergent views; not so severe as to leave them too scared to do anything.
That’s a help to all banks’ market sales and trading businesses which are now almost entirely driven by client activity levels rather than proprietary position taking, other than that by being essentially long of inventory, most benefit from the rising book value of stock held for sale in bull markets.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
