Lower volatility dents global banks’ FICC business in Q1

With major central banks widely expected to cut rates this year after a cycle of tightening, market volatility in the first three months of the year eased from heightened year-ago levels. The Merrill Lynch Option Volatility Estimate index in the US, for instance, has retreated consistently recently, according to Avishek Suman, investment research director at Acuity Knowledge Partners. Market volatility gives rise to trading opportunities. Notably, a calmer bond market in [the first quarter] negatively impacted FICC revenue of investment banks during the quarter," Suman said