Brian Chappatta, Columnist

Evergrande Panic Comes Just in Time for Big Banks

The biggest U.S. banks are facing a sharp drop in third-quarter trading revenue. Evergrande-induced volatility could drum up business.

September 20, 2021 at 3:46 PM UTC

By Brian Chappatta

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Big banks are primed to benefit from volatility.
Photographer: Spencer Platt/Getty Images

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Morgan Stanley strategists led by Michael Wilson warned on Monday that a 20% drop in the S&P 500 Index was a growing risk. Two weeks ago, Goldman Sachs Group Inc. analysts said investors shouldn’t assume low volatility will last.

Left unsaid: These two U.S. banks stand to benefit more than any others should those forecasts come to fruition.