Investment Brokers' Q2 Earnings To Watch: PJC, WETF, SF
Zacks Investment Research | Jul 24, 2019 09:34PM ET
Over the last several quarters, investment banks (part of the broader Finance sector) performed decently with some quarterly volatility. However, this time around, the trend is likely to get reversed amid trading woes.
Asset managers are less likely to have received support from trading revenues as several concerns, like uncertainty related to Brexit and U.S.-China trade war, and expectations of global economic slowdown persisted. Also, the Fed’s accommodative policy stance led to ambiguity. All these factors weighed on investors’ mind and resulted in lower volatility. Thus, assets under management are expected to record a decline in second-quarter 2019.
The quarter also witnessed lower global M&A deal value and volume, which is likely to have resulted in lower advisory fees. Though equity underwriting business is anticipated to provide some support driven by rise in IPO activity, debt issuances remained soft.
On the cost front, as investment managers continue investing in technology to provide better services, operating expenses are likely to increase.
Per the latest Zacks Investment Research
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