19 July 2017 by lberuti
If you ask any credit traders what has been the most salient feature of the market since the beginning of the year, the unanimous answer will be “no volatility”. But while traders are moaning about a market that has not experienced any rough patch in over a year - the most recent credit wobble followed the run up to the French elections and lasted less a week while the previous one goes back to the US elections and lasted a day -, others are relishing this environment. Investment bankers had a very good run advising on mergers and advising on bond and equity sales. And so had wealth management units at the different investment banks. Bank of America, Wells Fargo, JPMorgan announced record profits from wealth and asset management when they reported earnings during the last week, while they all suffered steep drop in revenue from trading bonds. Today, Morgan Stanley reported earnings that were symptomatic on that trend. Despite a 4% drop in fixed Income revenue, a 29% jump in wealth management profit helped it top estimates.