The fourth quarter of 2019 saw an unexpected bonanza in debt trading for banks. JPMorgan’s fixed income revenue of $3.4 billion marked a rise of 86% compared with the same quarter in 2018, while Morgan Stanley saw an increase of 126% to $1.27 billion.
JPMorgan’s chief financial officer Jennifer Piepszak had the grace to acknowledge that a surge in liquidity provision by the Federal Reserve contributed to the bumper quarter.
“The Fed balance sheet extension was for sure a tailwind for us,” Piepszak said.
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