Goldman Bond-Trading Bounce Not Enough to Get Investors on Board
- Shares drop as bank says it will halt buybacks to fund growth
- Firm posts biggest fixed-income revenue jump on Wall Street
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Goldman Sachs Group Inc.’s fixed-income trading desk and debt-underwriting division helped generate the bank’s highest revenue in three years. Investors still want to be convinced it’s sustainable.
Higher credit and commodity trading results drove the biggest first-quarter increase in fixed-income trading on Wall Street. Still, the shares fell as some analysts hoped for an even larger jump to prove the firm is back. The stakes are set: Goldman is halting share buybacks this quarter to put more capital into its growth plan.