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Banks warned of 'cold turkey' risk with fixed income cuts

Financial firms that exit businesses too quickly 'may be indefinitely precluded from future participation' in other areas, BernsteinResearch has said

Banks should avoid quitting their fixed income businesses "cold turkey" or risk losing market share in mergers and acquisitions, according to research firm BernsteinResearch.

Exiting a major trading business is risky for a bank's overall value for clients, because most capital markets businesses are linked through multifaceted client relationships, BernsteinResearch analysts said, warning there should be "no quitting cold turkey".

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