Fixed-income dealers that invested in their businesses over the past year are positioning themselves to capitalize on an anticipated pickup in market volatility and investor activity. Based on Q2 earnings, a number of firms are starting to see that strategy pay off, as fixed-income trading revenues rebound after a number of challenging quarters. Having sought to wring out every possible efficiency from their platforms, those dealers that have also maintained a strong commitment to a client-centric franchise are well-positioned to compete fiercely for the business of the market’s largest institutional investors.
MethodologyBetween February and May 2018, Greenwich Associates conducted 966 interviews across 514 institutions with investors active in fixed income in the United States. Interview topics included trading and research activities and preferences, product and dealer use, service provider evaluations, market trend analysis, and investor compensation.