Which are the top banks (by market share) in fixed income trading? Which are the top banks (by market share) in equities trading? After a varied end to 2016, has everything changed?
The new top banks in equities and fixed income sales and trading are exactly the same as the old top banks in equities fixed income sales and trading. But beneath the surface, the plates are shifting.
New figures from KBW on fixed income and equities trading market shares for 2015 and 2016 show that Goldman Sachs and Morgan Stanley are still on top in equities, while J.P. Morgan and Citi are still on top in fixed income.
Last year's losers were the European banks. Especially Deutsche Bank and Credit Suisse, which lost share in both markets.
Morgan Stanley and J.P. Morgan benefited from Deutsche and Credit Suisse's most share in equities. Citi and J.P. Morgan benefited in fixed income.
The big question then, is whether Deutsche and Credit Suisse continue to fade in 2017 - and whether the big U.S. banks continue to rise. KBW thinks they will: it's predicting a 23% increase in Q1 trading revenues across U.S. banks in the first quarter, compared to a mere 12% increase at the Europeans.