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business1d ago
Goldman Sachs bond traders stumbled as Wall Street rivals thrived: 'A fire is being lit under' them
- Goldman Sachs’ fixed income revenue declined about 10% in Q1, missing estimates by roughly $910 million.
- Analysts say Goldman was offsides on rates trades as markets priced fewer rate cuts this year.
- Rivals JPMorgan, Morgan Stanley, and Citigroup posted stronger fixed income results after Goldman’s miss.
- Goldman executives framed the results as a market environment issue rather than a firm-wide failure.
- CEO David Solomon stressed the firm’s scale and diversity, acknowledging uneven quarterly performance.
- Goldman’s fixed income underperformance contrasted with the rest of the firm, which beat expectations.
- Markets shifted away from expected rate cuts as oil prices surged and inflation concerns rose.
- Goldman shares fell up to about 4% after the earnings report.
- Goldman reiterated ongoing client engagement despite weaker rates and mortgage trading.
- Analysts and veterans view the quarter as a notable deviation from Goldman’s trading-to-performance legacy.
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