Why Is Deutsche Bank Getting Into Fixed Income Now?

Your next video will start in

Recommended Videos

  • Info

  • Comments


May 19 (Bloomberg) –- Bloomberg’s Lisa Abramowicz discusses Deutsche Bank’s venture into fixed income with Mark Crumpton on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Why is deutsche bank getting into fixed income right now.

Talk to me about the timing.

While rates trading has not been that profitable by banks, they have seen profits from the credit-rating unit.

The revenues have been declined.

The are still ready big revenues.

For the first quarter deutsche bank had a prophet.

This is still basically begin revenue generator.

What banks are realizing is first of all, you need to have a good sales department.

New bond sales can be profitable.

High yield is about 1.5%. talk to us about how prevalent deutsche bank is in extent them.

Last year they were the top on the dealer according to an associate survey.

They are pretty sick chickens in this market.

-- significant in this market.

They want to stay here.

It is a bigger point of profit later on if there is one of volatility.

You do not want to be getting out now because the time is bad.

At the same time, it is not like it will be as profitable as it once was.

What would it take for fixed income to become more profitable?

More volatility, certainly.

When yields are bigger and win the extra spread for bonds is wider, they can earn more.

It makes for a bigger profit.

There is greater dislocation so you can take advantage of this.

In a slow grind like we have been experiencing, it is really hard.

There's not a lot of volatility.

You have the fed camping -- clamping down profitability.

Are profits ever going to get that where they were precrisis?

Not likely.

You have things really pulling back their inventories.

They use this to facilitate trading.

That was really a generator of profit.

That is not likely coming back.

What are the headlines we are seeing right now?

Are there any that will prevent this return to profitability?

If the regulations are borne out as being more punitive, people have to entrench further.

Investors can use their own money to invest this.

It could offset losses in day-to-day trading.

Lisa winning us.

Thank you so much.

That is "on the markets."

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change