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Now junk-bond trading activity is down

Published 09/01/2017, 12:25 PM
© Reuters.  Now junk-bond trading activity is down
FAS
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FAZ
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XLF
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FXO
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IYF
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IYG
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SEF
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UYG
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FINU
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RWW
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RSPF
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VFH
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FNCL
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FINZ
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JHMF
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BTO
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FNCF
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FAZZ
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  • We already know the trading business for banks has been sluggish for years, but there's been growth in one profit center - junk-bond trading. But with August figures now in the books, it looks like junk-bond volumes are on track for their first year-over-year decline since 2011.
  • Couple that with a yield curve that continues to flatten, and it's shaping up for another lame quarter for bank trading results. Look for the first numbers to be floated in the first half of September as bank executives fan out to present at investor conferences.
  • ETFs: XLF, FAS, FAZ, VFH, UYG, IYF, FNCL, BTO, IYG, FXO, SEF, RYF, FINU, XLFS, FINZ, RWW, FAZZ, JHMF, FNCF
  • Now read: It's Not Just Big Banks


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