The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bank results: FICC trading revenues to fall 15% to 20% in 2010

UBS and Morgan Stanley beef up to regain market share; Broader competition from the French banks

"Morgan Stanley and UBS absolutely missed the low-hanging fruit of 2009 but they cannot cede that business to their competitors"

Steve Stelmach, FBR Capital

Earnings results for the fourth quarter across Wall Street confirmed the continuing decline in fixed-income trading revenues. JPMorgan, in particular, reported large declines in revenue for the quarter. Its fixed-income trading business brought in just $2.7 billion – in the previous three quarters revenues had been around $5 billion. Goldman Sachs, which led Wall Street in FICC trading over the first three quarters of 2009 also posted a substantial drop, with revenues of $3.97 billion for the final quarter, down from almost $6 billion in the previous quarter and more than $6.5 billion in each of the first two quarters.

A decrease in volumes over the period, rather than narrowing bid-ask spreads, lay behind much of the drop-off. Not wanting to risk the strong capital gains secured earlier on in 2009, many investing clients scaled back their activity in November and December, say bankers.

Cash cow dries up
Fixed-income trading was a cash cow for many banks in 2009 but some analysts say that game is now over.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree