The New York Times reports that the Swiss bank was among the first to adjust its debt-trading business to the harsher realities of new Basel III regulations, so it can probably weather the 28% quarter-on-quarter revenue drop it has just suffered in this segment. Other rivals may be less fortunate.
Fixed-income trading is a two-league competition. Goldman Sachs and the five balance-sheet 'flow monsters' make up the top flight with a combined market share of about 60%. Other firms - including Credit Suisse - are scrapping it out in the second division.
At this stage of the bank reporting season, there’s little to suppose that any of the second-tier fixed-income banks are closing the market share gap in a meaningful way. Fixed-income revenue at Morgan Stanley was down 44% quarter on quarter, a bigger fall than at the Wall Street banks in the debt-trading premiership.
Hit the link below to access the complete New York Times article:
Among the Fixed-Income Also Rans
Credit Suisse Returns to Profit and Plans More Cost Cuts
Rate-Rigging Investigation Rolls On
The Billionaire's Apprentice
The Buy Side: A Wall Street Trader's Tale of Spectacular Excess
