Goldman Sachs has become the latest investment bank to report a surge in fixed income trading in the second quarter of this year, with revenues hitting $1.93 billion.
Fixed income, currencies and commodities revenues were 20% higher than the second quarter of 2015.
Goldman said this was due to “significantly higher net revenues in currencies and credit products, as well as higher net revenues in interest rate products and commodities.”
The earnings report added: “Although market-making conditions generally improved compared with the first quarter of 2016, fixed Income, currency and commodities client execution continued to operate in a challenging environment characterised by low interest rates, political uncertainty and concerns about global growth.”
Its institutional client services business unit earnings were also up 2% compared to the same period last year, accumulating $3.68 billion in net revenues.
However, sales for Goldman Sachs’ equities trading were 12% lower than the second quarter of 2015, “due to significantly lower net revenues in both cash products and derivatives in Asia.”
Goldman Sachs is the latest to report a surge in fixed income trading, but a dip in equities revenues.
Bank of America Merrill Lynch’s fixed income sales increased 27% in the second quarter of this year, though equities fell 8%.
Similarly, JP Morgan reported fixed income revenues had increased a significant 35% in the second quarter this year.