Banks spend to save in fixed-income efficiency drive

Wastefulness of 20-year bull market will take years to reverse, dealers expect

Zar Amrolia, Deutsche Bank

Any business that can generate $135 billion in revenues – as fixed income did for the top 10 houses in 2009 – can afford to brush off concerns that some of the money is draining away as a result of IT and organisational waste, but with revenues now at roughly half those levels, according to analytics firm Coalition, banks are under intense pressure to save money. At the biggest dealers, that has gone beyond traditional belt-tightening, to become a huge demolition-and-rebuilding ex