![]() ![]() ![]() At Deutsche Bank AG, fixed-income trading rose 32% this quarter from a year earlier while the five biggest US investment banks saw similar gains. That focus has also seen it miss out on record activity levels in rates and FX, which have helped supercharge results at other banks. The investment bank recorded mark-to-market losses of $245 million at its leveraged finance business in the second quarter. The unit is exposed to the plunge in the value of corporate debt and securitized products amid higher interest rates. “A new plan will take time to execute, with tough markets adding risk and more detail needed.”Ĭredit Suisse said in a statement Wednesday that it was considering ways to fundamentally reshape the division, including attracting third-party capital for a securitized products trading business that’s typically profitable but uses about a quarter of the division’s capital. ![]() “More aggressive changes are likely coming,” Bloomberg Intelligence analyst Alison Williams wrote in a note after the results. The aim: an investment bank that uses less capital and is more tied to its wealth franchise. The results mean Ulrich Koerner, who is replacing outgoing Chief Executive Officer Thomas Gottstein, is set to accelerate an ongoing overhaul of the unit. The trading businesses produced $2.3 billion of revenue in the first half, the lowest this century. Revenues in both fixed income and equity sales and trading businesses were both down about a third in the second quarter, the Swiss bank said Wednesday. (Bloomberg) - Credit Suisse Group AG’s traders posted their worst first-half results in more than two decades, setting the stage for an overhaul that’s likely to see the lender’s trading heft shrink further. ![]()
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