Wall Street Is About to Answer the Good/Bad Volatility Question
- Price swings that spurred trading might now be a headwind
- Bank CEOs prep for questions on looming trade war, buybacks
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Careful what you wish for.
After bemoaning quiet markets that crimped trading revenue throughout most of 2017, banks celebrated volatility spikes in late January and February that brought life back to the equities, foreign-exchange, Treasury and commodity markets. But not all volatility is created equal. Big movements in asset prices sometimes spook clients enough that they decide to simply wait out the fluctuations.