Analysts at Keefe Bruyette & Woods and Barclays now believe that investment banks will report quarter-on-quarter trading revenue falls of 45% in fixed income and 25% in equities. JP Morgan will kick off the Wall Street reporting season next month.

David Konrad, an analyst at financial services boutique Keefe Bruyette & Woods, said in a report yesterday that he expected median trading revenues for US universal banks to fall by 20% from the first quarter of this year with fixed income declining 46% and equities 25% due to lower client activity.