The first quarter of the year had gone quite well but in the second quarter the analysts at Nomura are of the view that prices have been brought down in the terms of targets of the prices for Goldman Sachs as well as Morgan Stanley. All this has happened because of the condition of the capital market has been going down.
Nomura in his note has said that under the guidance of Glenn Schorr had to say that after the month of March, the condition of the capital market has gone down only and has not been keeping well.
If seen in a particular sense, they have given example of the trends of the investment banking. The equity has been underwritten by quarter-on-quarter by 8 per cent. The debt has also been underwritten away by quarter-on-quarter by the figure of 40 per cent as well as on the weak trading too. The volume of the fixed income has been between the figure of 5 per cent and 10 per cent on quarter on quarter basis.
They have also added that the market seems to be going on well on the way to being other one and done year for the markets of capital. In the first three months of the year 2012, the level of activity in the market has been quite low.
The analysts were of the view that if this very typical trend goes on for quite some time then it would be called consistent third year that the market of capital has been giving poor results. They have to say that the main questions that the investors have to ask that whether this trend is cyclical or secular. Apply with loans by text @ http://www.loansbytext.org.uk/ get quick funds for your immediate aids.
The teams of bank management teams are putting on the slowdown downs to the macro headwinds as well as the uncertainty about the weighing on risk appetite along with the activity of the corporate. This is what the analysts are of the view. In the same time, the management teams have been focussing on managing the costs as well as making a focus on the returns on capital in an effort so that return on equities can be defended.
It is quite possible that this slowdown is further going to result in some more amount of cuts in the staff. This what the participants of the market has to say. Talks are also on that the banks will be launching new redundancies.