Propping up profits

Proprietary trading at the larger banks is contributing a worryingly large share of profits to the bottom line, say market observers. Richard Bravo reports on whether an imbalance in the risk-reward equation of such an investment strategy is developing


The halcyon days of 2003 are over, but the much-anticipated downturn in fixed income has yet to materialize. And yet there are concerns that a secular shift in how the larger investment firms are making their money is adding too much risk to their investment strategies. Some have even argued that the proprietary trading operations at the major banks are signaling a change in the fundamental role that these financial institutions play, making them more akin to riskier hedge funds, not the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

The new rules of market risk management

Amid 2020’s Covid-19-related market turmoil – with volatility and value-at-risk (VAR) measures soaring – some of the world’s largest investment banks took advantage of the extraordinary conditions to notch up record trading revenues. In a recent…

ETF strategies to manage market volatility

Money managers and institutional investors are re-evaluating investment strategies in the face of rapidly shifting market conditions. Consequently, selective genres of exchange-traded funds (ETFs) are seeing robust growth in assets. Hong Kong Exchanges…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here