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More Debt Traders at Risk as European Banks Report Results 

July 23, 2015

Nicholas Comfort, Jeffrey Voegeli, Bloomberg Business

Where will the new leaders of Europe’s top securities firms scale back to increase returns? If the second quarter is any guide, their bond-trading operations could bear the brunt.

Credit Suisse Group AG, Barclays Plc and Deutsche Bank AG are already overhauling their investment banks to respond to stricter capital rules and a slump in debt trading that eroded some of their most profitable businesses. Now the banks’ new bosses, who took over this month, must decide where and how much more to scale back.

“They have to adapt, cut costs and refocus by exiting businesses if needed,” said Christian Sole, who helps manage 89.2 billion euros ($96.9 billion) at Candriam Investors Group in Brussels. “We can hope that outsiders coming in may have freer hands to reshuffle their banks than previous CEOs. Profits just aren’t satisfactory at the moment.”

Read more: Bloomberg Business

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