This is dedicated to the increased rhetoric of complaining across the street as trading volumes decline and the golden age of trading becomes a more and more distant past.
1) We definitely shouldn’t be complaining, but will anyway: JPM & BOFA
In this group we have the two best of the best when it comes to bringing new issues that every buy sider has to play. These guys will contend that they produce millions in PnL and commissions all while their bosses annually find a new way to lower their payout ratio. What these fine folks refuse to admit or in some cases even realize is that if they sat in any other seat across the Street their revenue generating ability would be cut in half and most likely be something much closer to $0.
2) Hey! We are a major bank and do important things! Please trade with us: GS, MS, CITI, BARC
These once mighty giants all had their day in the sun, but sadly for many different reasons their star is fading. These guys still have the potential to make decent profits, but unfortunately for them a lot of it will be squandered knife fighting each other by giving guarantees to overpriced traders, who manage to rotate seats every other year.
3) We are really trying hard to be important in the bond market: WFC & RBC
These upstarts continue to grow headcount and slowly peck away at the dying carcasses of the banks below. For now hope springs eternal as they continue to push into more blue blood bond market territory. While they may get picked off from time to time on those 2×2 markets it is a small price to pay to build brand value and market share. Only time will tell if they can build enough lasting good will to survive the next bond market meltdown or if they will downsize into it like so many in the past.
4) Holding on for dear life and praying we have enough management support to exist: CS & DB
Once upon a time these were major players in the bond market, but currently are just trying to survive layoffs and desertions to keep what little new issue money flowing that they can. The leftovers are either young kids who will take any job, lifers with unwavering support, or poor guys who can’t find another ship to board. Barring a major management and political shift these places will fall into the tier below.
5) We are no longer a relevant firm, but at least it’s not a bucket shop: UBS & BNP
Here we find the poor souls who managed to keep their jobs post a culling of their respective Fixed Income Groups. They hope against hope that the powers to be will again rebuild the business and times will be good again. Historically speaking, management will agree to rebuild, which acts as fantastic signal for calling a market top and is a great indicator for the imminent demise of High Yield. These guys are the last line before true bucket shop and at least have the dignity of a decent base salary and the ability to commit capital on bad trades