For Goldman Sachs, It's a Tale of 2 Investment Banks
The COVID-19 pandemic has been an interesting time for investment banks. Heightened volatility in the market has meant higher trading volumes and more deal-making, as well as helping companies raise debt and go public.
Investors expected this level of activity would ease up whenever the world settled into life after the pandemic.
But Russia's invasion of Ukraine, supply chain troubles, high inflation, the Federal Reserve's plans to raise interest rates to tame that inflation (as well as to reduce its massive balance sheet), and rising bond yields have combined to intensify volatility over the last six months. This volatility has been good for some investment banking businesses but a headwind for others. This has created an interesting -- almost contradictory -- situation for investment banks. Nowhere can this be seen better than at Goldman Sachs (NYSE: GS).
Source Fool.com
