A longtime secret sauce on Wall Street — derivatives trading — is drying up. And that’s having big blowbacks on Wall Street’s revenue and its bloated cost structure, as noted in today’s Wall Street Journal story.
The gross market value of derivatives contracts fell 40% from 2008 to 2010, according to the Bank for International Settlements. Credit-default swaps — which became poster children for the worst problems in the opaque derivatives market – fell 70% during the same period.
The declines come from a reduced appetite for risk at bank trading desks and among hedge funds who are looking to preserve clients’ capital in a difficult market environment…..
Find out what you need to know at http://blogs.wsj.com/deals/2011/06/29/heres-why-wall-street-is-cutting-jobs/?mod=
No comments:
Post a Comment