Overview
- Goldman, which reported earnings Monday, said fixed-income revenue fell 10% to $4.01 billion and missed estimates by about $910 million.
- People familiar told Reuters that losses on the rates desk late in the quarter followed Iran-war volatility that left the bank holding positions as a market maker.
- In contrast, JPMorgan said fixed-income revenue rose 21% to $7.1 billion, while Morgan Stanley jumped 29% and Citigroup climbed 13% to $5.2 billion.
- President John Waldron said he has no concerns about the fixed-income unit, and CFO Denis Coleman described the quarter as tough for rates and mortgages.
- Wells Fargo analyst Mike Mayo called the performance worst in class and warned that traders and risk managers will face heat if results like this recur.