<\/p>\n
Strong debt issuance, M&A expected to be revenue drivers in the quarter.<\/p>\n
The big Wall Street banks are set to start reporting second-quarter earnings that should reveal stronger investment banking revenues, says Moody\u2019s Ratings.<\/p>\n
On Friday the large banks, including JPMorgan Chase & Co. Inc., Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc., Bank of America Corp. and Wells Fargo & Co., begin releasing their latest quarterly results.<\/p>\n
In a new report, the rating agency said it\u2019s anticipating improved investment banking results compared with the same quarter last year, amid strong debt underwriting, robust merger-and-acquisition activity, and higher trading volumes.<\/p>\n
\u201cDebt issuance volume systemwide was higher than a year ago, with the largest increases in high yield,\u201d it said, while, for equities, secondary offerings were flat, and initial public offerings were down slightly from last year.<\/p>\n
\u201cHigh-yield debt issuance volumes were up significantly from a year ago, building on momentum over the last 12 months that likely reflected tighter credit spreads, more clarity around monetary policy and a better-than-expected economic outlook,\u201d Moody\u2019s said in the report.<\/p>\n
Completed merger-and-acquisition deals were higher both quarter over quarter, and year over year, it said.<\/p>\n
Trading volume also rose strongly from last year, the report said, although it noted that \u201clower volatility could limit profitable trading opportunities.\u201d<\/p>\n
In equities, volumes in both cash and derivatives trading \u201cwere robust,\u201d the report said, \u201cbut low equity market\u2013implied volatility persisted.\u201d<\/p>\n
\u201cVolatility and trading spreads are generally positively correlated and can boost revenue for banks that are able to navigate the markets and provide liquidity,\u201d the report noted.<\/p>\n
The latest data suggest that, while spreads have widened, volatility has dropped, which Moody\u2019s said sends mixed signals about the banks\u2019 likely second-quarter equity trading revenue.<\/p>\n
\u201cBased on these indicators, we do not expect material growth in Q2 equities trading revenue from a year ago,\u201d it said. However, it noted that the data on volatility may be \u201cdriven by a handful of stocks and, as such, may be a weak signal of likely trading revenue.\u201d<\/p>\n
On the fixed-income side, trading volumes in credit ETFs and in fixed income, currencies and commodities (FICC) derivatives \u201cwere elevated, but implied volatility in investment-grade and high-yield credit markets was still at multi-year lows,\u201d it said.<\/p>\n
Overall, Moody\u2019s said it expects FICC sales and trading revenue for the second quarter to be similar year over year.<\/p>\n
\u201cHowever, the significant increase in primary issuance volumes could boost secondary trading volumes and drive interest rate hedging activity,\u201d it said.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Strong debt issuance, M&A expected to be revenue drivers in the quarter. The big Wall Street banks are set to start reporting second-quarter earnings that should reveal stronger investment banking revenues, says Moody\u2019s Ratings. On Friday the large banks, including JPMorgan Chase & Co. Inc., Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc., Bank of […]<\/p>\n","protected":false},"author":1,"featured_media":2058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Wall-street-10-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Wall-street-10-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Wall-street-10-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Wall-street-10.jpeg",2000,1335,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=2057"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2057\/revisions"}],"predecessor-version":[{"id":2059,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2057\/revisions\/2059"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/2058"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=2057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=2057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=2057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}