Trading Floors ‘Quiet’ as Revenue Drops, JPMorgan Analysts Say
- Analysts lower earnings estimates for biggest investment banks
- FICC revenue to fall 12% on last year, equity trading down 28%
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Quiet trading floors are set to depress global investment banks’ second-quarter revenue 24 percent, with the underwriting and equities businesses facing the biggest drops, according to analysts at JPMorgan Chase & Co.
Equity-trading revenue will retreat 28 percent compared with the same period in 2015, while fixed income, currencies and commodities, or FICC, will drop 12 percent, analysts led by Kian Abouhossein said in a report Thursday. The analysts cut their 2016 earnings estimates for seven of the eight global firms they cover.