Rates Traders Enjoyed 48% Revenue Leap as ‘New Regime’ Beckons
- Firms made $24.1 billion betting on inflation, rates in 2022
- Central banks’ exit will stir market, One River’s Politi says
This article is for subscribers only.
The world’s biggest banks just enjoyed their second-best year for rates trading in a decade as rising interest rates and soaring inflation brought lucrative turbulence to the market.
The 10 largest firms made $24.1 billion in the most frequently-traded currencies, known as the G-10, according to data from Coalition Greenwich. That’s a 48% increase on the previous year. Only 2020 saw a better result, when pandemic volatility and emergency quantitative easing pushed returns to $26.7 billion.