Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Bloomberg: Citi reaps $300M derivative profit

Published 10/27/2016, 03:59 PM
Bloomberg: Citi reaps $300M derivative profit
C
-
  • So much for the Volcker Rule? Citigroup (NYSE:C)'s U.S. dollar interest-rate swaps desk pulled down about $300M this year serving clients making bets on the direction of short-term rates, according to a Bloomberg story.
  • This report follows another from last week in which one trader earned more than $100M buying junk debt at the lows early this year.
  • Part of Dodd-Frank financial reforms, the Volcker Rule was supposed to eliminate or at least limit banks from making these sorts of bets, and turn trading desks into little more than facilitators of client trades.
  • In the case of Goldman, word is the trader was a buyer as clients were eager to sell amid the early market jitters this year. He later found other buyers at higher prices. Citi declined to comment on its desk's gains, though surely some of those profits simply came from volume amid a good deal of rate volatility this year.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.