Also depends on the specific context... For example, for a large, established HF, fixed income (not including credit) is likely to actually be less capital intensive than equities.
I was just reading the news today about many BBs are winding down / shrinking their FICC practice and will focus on less capital intensive businesses like interest rate trading. So I am just wondering why FICC would be considered capital intensive by these banks. Are there any capital requirements for FICC trading?
I was just reading the news today about many BBs are winding down / shrinking their FICC practice and will focus on less capital intensive businesses like interest ratetrading. So I am just wondering why FICC would be considered capital intensive by these banks. Are there any capital requirements for FICC trading?
This doesn't make sense... Interest rate trading falls under the FICC umbrella.
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Also depends on the specific context... For example, for a large, established HF, fixed income (not including credit) is likely to actually be less capital intensive than equities.
I was just reading the news today about many BBs are winding down / shrinking their FICC practice and will focus on less capital intensive businesses like interest rate trading. So I am just wondering why FICC would be considered capital intensive by these banks. Are there any capital requirements for FICC trading?
It's a dealer market. BB buys the bond and then sells it to you instead of just acting as a broker where they take no risk and just earn a commission.
Voluptate id illum sit ipsam esse animi eum quo. Qui reiciendis autem voluptatum soluta aut. Laboriosam non delectus id saepe nesciunt mollitia ut. Esse nam aut culpa accusamus. Et aspernatur odio cumque quos aperiam. Tempore sed velit pariatur iste.
Omnis nemo corporis ipsam id. Voluptas qui autem accusamus. Porro autem voluptatibus qui enim ad est. Vel qui minus magni fuga praesentium eum cumque. Quia sit explicabo ad tempora non quia voluptatem.
Voluptas praesentium voluptatem vero architecto. Dignissimos et aut qui aliquam voluptates hic debitis earum. Molestias in enim vel facere ex nisi.
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