Goldman Sachs’ dealmakers may be struggling, but its traders are on a hot streak.
So far this year, the US banking giant’s markets unit has hauled in more than $100m on more days than at any time since its pre-crisis hey-days.
Goldman’s traders made more than $100m in revenue on 85 separate days during the first nine months of 2022, regulatory filings show.
This is more than every full year since 2010 and is on course to exceed 2007 — the year before the financial crash — when it made more than $100m on 88 separate days.
Surging inflation, rising interest rates and concerns over major macro events such as Russia’s invasion of Ukraine have all hampered deal activity in 2022, putting the brakes on a boom that hauled in a record $130bn for banks last year, according to data provider Dealogic.
But these same factors have also led to increased volatility in markets, which benefits investment banks’ sales and trading units.
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Goldman has pulled in $20.5bn in revenue from its markets business in the first nine months of 2022, up 14% on last year. Meanwhile, dealmaking fees were $6.1bn over the same period, a decline of 45%.
Goldman’s traders made more than $100m on 22 days during the third quarter of 2022, compared to 13 days a year earlier. This is down slightly from the 31 days it made over $100m during the second quarter of 2022, following a 32-day streak during the first three months of the year, which was its best quarter for 11 years.
It is on course to beat the 88 days it made over $100m in 2007. But Goldman traders’ hot streak still trails the 131 days they made more than $100m in 2009, when they benefited from the fallout from the financial crisis.
Goldman’s traders made a loss on nine days during the third quarter, but none of those losses exceeded $100m, according to the regulatory filings.
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To contact the author of this story with feedback or news, email Paul Clarke