Global investment banks’ earnings may decline this year, given a challenging credit trading environment and low level of deal flow, said JP Morgan Securities analysts, who cut their 2016 earnings estimate for investment banks by an average 20 percent.
“We believe the Q1 IB revenue environment has started on a challenging note with limited issuance activity and widening credit spreads,” said analysts led by Kian Abouhossein, who estimate revenues to decline 21 percent in 2016.
