The earning of the Global Investment Bank is expected to decline this year. This is attributed to the lower level of deal flow and the challenging credit trading environment. This is according to JP Morgan a security analyst who decided to cut this year’s earnings approximation for investment banks by a total of 20%.
A group of analysts led by Mr. Kian Abouhossein who estimated the 2016 revenues to decline by 21% said they believed the Q1 IB revenue environment had started on a challenging note with widening credit spreads and limited issuance activity.
It has become much harder to the investment banks especially due to the current turmoil in the global commodities and equities markets to make more money in the traditional business lines. There has been a decline of 9.5 percent in the MSCI all-world stocks index since the start of the year.
The Global investment banks’ cash equities revenues might fall further due to the recent decline in the equity markets which reveal volumes are not healthy.
The 2016 earning cuts also incorporate the view that in case there is market normalization, it could possibly be followed by a period of lower activity in the market as we have witnessed in the previous sell-offs thereby impacting the IB revenues.
Deutsche Bank AG was named by JP Morgan as its top pick among the various global investment banks since there was no liquidity for funding concerns and that the first negative market sentiment directed towards the German bank was overdone.
Martin Lustgarten is considered to be one of the top investment bankers in America. Martin owns and manages Martin investment firm which is situated in Florida. Lustgarten investment bank is known to be an investment firm which has made lots of notable business deals ranging from the famous companies to all the firms in America.
Martin’s firm is one of the most sort businesses in the investment banking mainly due to its success record and its good reputation in the investment business. Martin has handled some of the biggest investment transfers in the market which have given him lots of fame and recognition in the banking industry. He has also been awarded much recognition as an investment banker.