The early signs from US bank reporting season is that FICC divisions haven’t done well at all and the admission from one bank that the decline in earnings was due to clients being reluctant to enter markets signals to me that the FICC business model has to change. Just as news outlets can’t have hundreds of reporters sitting around waiting for the Titanic to sink again, so banks need a better balanced FICC business – and that means more traders proactively taking risk.
Tag: client behaviour
As often seems the case when the emotive subject comes up, Thursday’s column on one aspect of last look prompted my messaging channels to go into meltdown. Amongst the feedback were a few suggested answers to my question that asked why there would be asymmetric response times from a small number of LPs and I thought, today being a UK holiday and likely to be quiet, I would share these and let the readership decide for itself what it thinks.