Trading desks that last year raked in their biggest haul in almost a decade are expected to report a sharp drop in second-quarter revenue this week as life returns to normal and pandemic-induced market volatility fades. Meanwhile, on the ascent: investment bankers who are scrambling to keep up with a record deluge of deals, fueled by rebounding corporate confidence and free-spending private equity firms.
Wall Street Dealmakers Step Into Limelight With Windfall Nearing
By Sonali Basak- Deal making is on the ascent as trading revenue faces drop
- Goldman Sachs passed $1 trillion mark earlier than ever before
Never before has Goldman Sachs Group Inc., the leader on league tables tracking mergers and acquisitions, passed the $1 trillion mark for transactions so early in the year. JPMorgan Chase & Co. and Morgan Stanley, the No. 2 and 3 banks by market share respectively, have also seen large jumps in business.
“We’ve done 200-plus $500 million deals in the first half, and the five-year average is in the 80 to 100 range,” Stephan Feldgoise, Goldman Sachs global co-head of mergers and acquisitions, said in an interview, citing data using all publicly available sources.
Banking on Deals
Investment bank deals surged in 2021
Source: Bloomberg
Now, the question is whether the tidal wave of takeovers, stock offerings and debt deals can make up for what’s expected to be a 28% drop in combined trading revenue at the five biggest U.S. banks -- a group that also includes Bank of America Corp. and Citigroup Inc., where low interest rates are pressuring lending margins. . ."
READ MORE > https://www.bloomberg.com/news/articles/2021-07-12/wall-street-dealmakers-step-into-limelight-with-windfall-nearing?
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