All articles tagged with #bond trading
Bond fund managers on Wall Street are focusing on middle-maturity Treasuries, especially around 5 years, as they believe this strategy will perform well regardless of the Federal Reserve's uncertain path of interest rate cuts, which are influenced by mixed economic signals and inflation concerns.
Bond traders are increasingly betting on at least one half-point interest rate cut by the Federal Reserve this year, with rising demand for options that hedge against steeper cuts, despite some caution from the Fed and mixed market signals, amid a cooling labor market and sticky inflation.
Australian bank ANZ was fined a record A$240 million (US$160 million) by ASIC for misconduct including mishandling a government bond sale and failing to refund fees to deceased customers, highlighting serious issues in its risk and compliance culture. The bank's new CEO, Nuno Matos, has acknowledged the need for significant reforms, including job cuts, to restore trust and improve operations.
US bond traders are experiencing a strong first half of the year with gains driven by expectations of Federal Reserve rate cuts, a cautious approach to economic data, and geopolitical uncertainties. The market anticipates potential rate reductions as economic growth shows signs of slowing, with upcoming employment data and trade negotiations influencing investor sentiment. Despite macroeconomic challenges, Treasuries remain attractive, and traders are positioning for further gains depending on economic indicators and Fed policy signals.
JPMorgan Chase is enhancing its mobile app with new bond trading tools to attract more investors and aims to grow its self-directed investing assets to $1 trillion, competing with established online brokerages by simplifying fixed income investments and integrating banking and investing experiences.
Goldman Sachs reported a 19% drop in Q1 profit due to sluggish dealmaking and bond trading, as well as a loss on the sale of assets in its consumer business, Marcus. CEO David Solomon said investment banking activity remains muted, and while there are some green shoots emerging, clients remain cautious. The bank's net profit applicable to common shareholders fell to $3.09bn in the quarter, compared with $3.83bn a year earlier. Revenue from fixed income, currency and commodities (FICC) trading plunged 17% to $3.93bn, while equity trading revenue sank 7% to $3.02bn. Goldman is exploring strategic options for its consumer platform business, which has lost about $3bn in three years.