As illustrated by the chart below, he said GS substantially increased its FICC share between and as it was one of the only "dependable liquidity providers to clients during a period of extreme stress. And especially in Europe Even following recent declines, those big FICC revenues for the banks suggest that there is much more fat yet to cut in margins on fixed income.
Greenwich Associates suggests that its market share in secondary European fixed income grew from 6.
Schwartz was at pains to stress that this isn't a set of targets - it's just a "comprehensive plan" and a look at "what's happening under the hood" already at Goldman. It's not just about revenues - Goldman has created "massive operating leverage" and is now in a position to grow again Schwartz said Goldman can go for growth again because of all the hard work it's put into cutting costs and risk weighted assets in the past.
Goldman plans to grow in fixed income, currencies and commodities trading by pushing into the areas where it's under-represented They reveal that the biggest cuts came in the micro credit business, with the macro business suffering far less. After a succession of miserable quarters in fixed income sales and trading which Goldman Sachs was "not satisfied with", ex-CFO and current COO Harvey Schwartz made his presentatio n explaining what Goldman plans to do about it and why the bank's fixed income currencies and commodities FICC business is still a good bet - not withstanding the fact that he also described the environment for the bank's FICC business in the third quarter as, "pretty challenging".
In fact, it's been hiring already.
Goldman's been doing some big fixed income hiring, especially in sales It has a significant opportunity to increase its penetration with corporate clients. In a low-rate, low-volatility world, real-money fund managers and hedge funds are focusing on how to increase efficiency in bond-market trading and reduce the friction costs and slippage that consume a high proportion of the moderate alpha that portfolio managers can generate.
Now it's ready to grow again Schwartz also suggested there's no need to worry too much about Goldman's recent poor performance in fixed income.