Investment bankers at Morgan Stanley will see their bonuses swell this year, while bond traders at JPMorgan and Citibank face the fastest shrinking bonuses on Wall Street.
Figures released by Bloomberg show that JPMorgan’s fixed-income trading revenue saw the biggest drop of Wall Street’s five largest banks, falling 14% to 10.6 billion. Both JPMorgan and Citigroup are believed to be suffering the effects of their dependency on interest-rate and currency markets.
At the other end of the scale, it is thought that Morgan Stanley would have seen the steepest gains in revenue due to strong M&A advisory activity, as well as underwriting stock and bond deals.
“This will be a good year for investment bankers, and the largest banks have figured out a way to compensate their best individuals,” said Devin Ryan, an analyst at JMP Group investment bank. “If returns are still challenged, and in 2014 they will be, that will impact where the compensation pools are for those businesses.”
JPMorgan, Citigroup and Wells Fargo will publish their earnings tomorrow, while Morgan Stanley, Bank of America and Goldman Sachs will report towards the end of the week. Collectively, these banks are expected to post around $15.9 billion in profit for the quarter.
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