If you want to work for a market leading bank in fixed income or equities trading, the lesson of the past two years is this: don't count on the leader today being the leader tomorrow. There are a few consistencies in both markets - Morgan Stanley is almost always top in equities, and Citi and JPMorgan are always at the top in fixed income, but there are big variations too. Today's winner is tomorrow's loser and yesterday's loser might make a comeback.
The charts below show the latest percentage market shares, based on US$ revenues, for leading banks in both asset classes between 2017 and the third quarter of 2019. If you want to work for a top-tier bank, you might want to study them carefully. There are some distinct trends over time.
Deutsche Bank's diminishing market share in equities trading before its July shutdown is, for example, laid bare. But then so too are BNP Paribas and SocGen's in the most recent quarter. Barclays is holding its own in the equities market; Goldman Sachs is going from strength to strength.
In fixed income currencies and commodities, JPMorgan, Morgan Stanley and JPMorgan have been gathering steam this year. Deutsche Bank's demise in FICC is less pronounced than in equities, but there's been a slow bleed nonetheless since 2018. HSBC floundered in the first and second quarters, but made up for it in Q3.
If KBW's figures suggest anything, though, it's that things can change and this year isn't over yet. Most banks have had a strong end to 2019. There is all to play for in 2020. Good luck.
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