The Fixed-Income Challenges Facing Goldman Sachs
Goldman Sachs Group Inc.’s fixed-income traders were supposed to take back market share in the second quarter, halting years of declines. That now looks harder, after JPMorgan Chase & Co. and Citigroup Inc. blew past analysts’ estimates last week. Goldman’s franchise that trades bonds, currencies and commodities -- once fueling record profits -- has dropped behind top U.S. competitors in recent years, leaving its market share in the 12 months through March the smallest since the financial crisis. Analysts predicted the second quarter would mark the end as big investors reacted to market swings. Then JPMorgan and Citigroup posted surprisingly strong results, driven by services in which they typically outdo Goldman. Bloomberg's Donal Griffin reports and JPMorgan Global Market Strategist David Stubbs discusses with Bloomberg's Anna Edwards and Manus Cranny on "Countdown."