It is not at all surprising bonds would be doing better in a financial market scared of it's own shadow when anticipating a recession, but, this is surprising. I hope all this is correct and not manipulated, but, there is reason to at least run an analysis on it.
October 18, 2016
By Dakin Campbell
By Dakin Campbell
Goldman Sachs Group Inc., (click here) the Wall Street firm most reliant on trading, reported a 47 percent increase in third-quarter profit as its performance in bond trading beat analysts’ estimates.
Net income rose to $2.09 billion, or $4.88 a share, from $1.43 billion, or $2.90, a year earlier, the New York-based company said in a statement Tuesday. That surpassed the $3.88 average estimate of 20 analysts surveyed by Bloomberg.
Chief Executive Officer Lloyd Blankfein has cut jobs, given responsibility to more junior employees and lowered compensation to prepare the firm for when activity rebounded. This quarter shows the benefit of the strategy, which attracted some skepticism among analysts as competitors such as Morgan Stanley decided to retreat instead.
“We saw solid performance across the franchise that helped counter typical seasonal weakness,” Blankfein, 62, said in the statement.
Goldman Sachs’s stock rose 1.6 percent to $171.75 in early trading at 8:15 a.m. in New York. The stock had dropped 6.2 percent this year through Monday, trailing the 3.8 percent advance for the Dow Jones Industrial Average....
