Decline in trading revenue sees Wall Street bonus pool slashed
Three Fed hikes, European elections, ECB QE tapering, and a drop in CNY that we've not since 2008. Yet, it's not enough to keep up the optimism in Wall Street.
Bloomberg reports that the cause is that investors haven't found much interest in stepping up to bet on the directions of interest rates and currency movements in 2017. In return, that drives revenue at Wall Street's trading desks lower for the year.
People briefed on discussions at Bank of America say that rates traders are likely to see a slump of more than 10% in their bonus pool. Meanwhile, people familiar with bonus discussions at JP Morgan say that they are set for declines of about 5%.
Well, round and round and the world continues spinning anyway.
