Bank of America Merrill Lynch (BAML) has become the latest to reveal a surge in fixed income revenues.
BAML posted a considerate 27% increase in fixed income trading revenues in the second quarter this year, compared to the same period last year.
Its equities revenues were down 8%, though overall sales and trading revenues increased 14% in the second quarter compared to 2015.
Brian Moynihan, chief executive officer at BAML, said: “We had another solid quarter in a challenging environment.”
He added: “We continued to invest in core growth areas and to manage expenses, which were down 3% year over year to a level not seen since 2008.”
Second quarter revenues across investment banks have highlighted a significant increase in fixed income trading and revenues.
JP Morgan’s markets and investor services business unit saw a 23% year-on-year increase in Q2, boosted by its strong fixed income results which saw revenues for that unit increase by 38%.
Higher revenue in rates, currencies and emerging markets, credit and securitised products in the second quarter, saw the firm’s fixed income revenues surge 35% to almost $4 billion.
Similarly, Citigroup’s markets and securities service business posted a surge in revenues, following a successful second quarter in fixed income trading.
Total revenues across the markets business were up 10% this quarter compared to the second quarter last year, bolstered by a 14% increase in fixed income revenues.