http://www.bloomberg.com/news/2014-06-06/morgan-stanley-is-said-to-cut-london-fixed-income-traders.html
Morgan Stanley (MS)eliminated fixed-income trading jobs in London, New York and Toronto this week because of tough market conditions, people with knowledge of the plan said.
The biggest trading banks have warned investors about a slump in fixed-income trading activity this quarter amid low volatility. That threatens Morgan Stanley’s quest to boost the return on equity of its fixed-income business to 10 percent.
Morgan Stanley (MS)eliminated fixed-income trading jobs in London, New York and Toronto this week because of tough market conditions, people with knowledge of the plan said.
The biggest trading banks have warned investors about a slump in fixed-income trading activity this quarter amid low volatility. That threatens Morgan Stanley’s quest to boost the return on equity of its fixed-income business to 10 percent.
‘Lower Activity’
“The volumes that we talked a lot about during the first quarter -- lower activity -- we’re continuing to see that really does persist into the second quarter,” Porat said at the time.
Investment-banking revenue at five of the top securities firms may drop 7 percent on average in the second quarter as clients cut back on fixed-income trading and margins narrow, JPMorgan Cazenove analysts said in a note to clients on May 29.
Average sales from fixed-income, currencies and commodities trading may fall about 10 percent, while revenue from advising on deals and underwriting securities will probably rise about 1 percent, the analysts wrote.
Morgan Stanley had 55,883 employees as of March 31, down from 62,494 three years earlier, according to its filings.
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