FICC Revenues At Lowest Point Since Financial Crisis

Revenues for fixed income, currencies, and commodities (FICC) is now at the lowest point since the financial crisis, with the top 10 investment banks losing 15% year-on-year to just $80 billion in 2013 compared to $144 billion in 2009, and it could continue to fall by 13% - 18% this year due to a combination of lower levels of trade activity and tightening spreads that are returning to historical norms now that markets are finally stabilizing.

“Broker revenue generation is largely a function of income from client activity and gains and losses on inventory management. That said, the relative importance of activity and inventory management varies significantly by business line,” write Credit Suisse analysts Christian Bolu and...