Investment banks restructure on expectation of muted returns

According to the Financial Times, investments banks like Credit Suisse (CS) and Citigroup (C) are scaling back their trading of government bonds in an effort to reduce assets on the fear of more muted returns and revenue.

“Rates businesses could have lower revenues over the next few years as European sovereign opportunities recede,” Andrew Morton, global head of rates at Citigroup, said.

A top-ranking executive at a large European bank said: “It is going to require some restructuring. People will have to adapt their businesses to some extent.”

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