Goldman Sachs (GS) Could Be Pulling In Record Trading Revenue

Charles Gasparino of the FOX Business Network reported on Tuesday that Goldman Sachs (NYSE: GS) has no reason to worry following losing out to competitor Morgan Stanley (NYSE: MS) for the right to advise the huge government selloff of its Citigroup Inc. (NYSE: C) shares.

Goldman is simply raking in record revenues from trading bonds by taking advantage of the record-low interest rates put in place by the Federal Reserve to spark the current rally in the fixed-income markets, according to senior traders at rival firms cited by Gasparino.

In a market where the Wall Street firms have profited heavily from fixed-income revenue, Goldman has used its expertise in trading bonds to outpace the competition.

According to the Gasparino report, Goldman may generate more revenue in the first-quarter from trading bonds than the firm pulled in during its best quarter of 2009, which would exceed the $6.8 billion mark.

The current market environment has made the debt trading industry a nearly foolproof practice due to the interest rates, and may allow Goldman to surpass the massive income that it saw in 2009 of $12 billion.

“From what we hear, they are knocking the ball out of the park this quarter," an unnamed trader from a rival firm told Gasparino.

The favorable bond trading conditions will not last, as interest rates will inevitably have to rise and the government program to buy mortgage debt is set to expire this month, but Goldman is definitely taking advantage of the current environment that plays directly into its hands.

The firm is set to announce first quarter earnings on April 20.

You May Also Be Interested In

• Affirm stock drops on report Walmart-backed fintech One is launching BNPL; Mizuho says 'concerns overblown'
• Citi Reiterates Buy Rating on Lam Research (LRCX)
• Citi Reiterates Buy Rating on Nucor (NUE)