Wall Street Wins (Or Doesn’t Lose Much) on Junk Trading

A few things went right last month for Wall Street’s beleaguered bond dealers, helping to prop up otherwise sagging trading revenue. But that doesn’t mean they’ve reclaimed Masters of the Universe status just yet.

Here’s what went right: Banks from JPMorgan Chase & Co. to Goldman Sachs Group Inc. reported second-quarter earnings that were higher than analysts expected largely on the back of debt-trading revenue that declined less than some of the banks predicted. In particular, they benefited from more transactions in high-yield bonds, a record June for U.S. corporate-debt sales and a couple of decent wagers on Treasuries.