Goldman Sachs traders racked up more than $100 million in more days in the first half of 2022 than in any 12-month period since 2010, as volatile markets offer a bonanza for investment banks even when deal-making slows down.
Traders at the US bank made more than $100 million in revenue on 63 separate days in the first six months of this year, regulatory filings show.
The streak already exceeds any full year since 2010, when traders made more than $100 million in 68 days.
Banks’ trading desks have enjoyed a three-year run of success, after a prolonged period during which regulatory intervention and muted markets saw years of depressed earnings and questions about whether banks should toe certain lines of business
Former Goldman Sachs chief Lloyd Blankfein faced pressure to exit the bank’s fixed-income trading business as some European rivals axed entire units in the wake of falling revenues after the financial crisis 2008 World Cup.
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But the wild market swings initiated by the Covid-19 pandemic have more recently been replaced by dislocations from Russia’s invasion of Ukraine and central bank actions to curb inflation, presenting opportunities for traders banking
Goldman made more than $100 million on 31 separate days in the second quarter of 2022, following a 32-day streak in the first three months of the year that was its best quarter in 11 years.
The bank’s traders had losses on 11 days in the first six months of this year. In two of those days, losses exceeded $100 million.
Goldman’s 100 million-day run in 2022 already looks set to rival the boom year of 2007, when the bank brought in at least $100 million on 88 separate days.
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Goldman’s markets business posted revenue of $14.3 billion in the first six months of 2022, up 15% from a year earlier.
Trading accounted for 58% of total earnings during the first half of the year, edging out other parts of the business.
Its prized trading unit fell 38% in the period to $4.5 billion as investment banking fees fell from 2021 highs.
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