Prop Trading

How A 34 Year Old Goldman Trader Made $100 Million In A Few Months

The curious case of how a 34-year-old high-yield trader at Goldman managed to make $100mm in profits in just 6 months while somehow maintaining compliance with Dodd-Frank regulations...“It goes against everything we’ve been seeing the last three years."

Goldman Smashes Expectations As Trading, Prop Revenues Surge, "Average" Employee Makes $322,607

there was little concern that Goldman - the pure-play trading powerhouse (at least until the recent launch of a retail lending and deposit operation) would likewise surpass Wall Street's expectations, and moments ago that was confirmed when Goldman reported EPS of $4.88, smashing expectations of $3.86, as profit jumped 47% from a year ago to $2.1 billion. The profit beat was driven by a 19% spike in revenue which rose from $6.9 billion to $8.2 billion, beating consensus estimates of $7.6 billion.

After Slamming IEX, Nasdaq Launches Product For Traders Seeking To Avoid HFTs Frontrunning

After a lengthy battle seeking to end IEX' hopes to launch an exchange, NASDAQ plans to introduce an investor friendly “extended-life” order type. This proposed order type, would allow orders that remain live for at least one second to jump ahead of orders at the same price that do not. Investors  who use such an order type would not have to worry about competing with  speedy HFT’s to get to the top of the queue, according to CEO Robert  Greifeld.

Its 2007 Deja Vu All Over Again: Goldman Is Raising $8 Billion LBO Fund

The last time Goldman raised an private-equity buyout fund was in 2007: at just over $20 billion, it was the second biggest private-equity fund ever. It also top-ticked the market. Nine years later, the WSJ reports that Goldman is finally preparing a much anticipated sequel, in the form of a corporate-buyout fund with assets between $5 and $8 billion.

Goldman Beats On Rebound In FICC, Prop Trading As Headcount, Comp Slashed

After last quarter's brutal results, which saw the worst revenue for Goldman Sachs since Q4 2011, the question about Goldman's Q2 earnings report was not if it would beat but by how much. Moments ago we got the answer when the company reported Q2 EPS of $3.72, handily beating consensus estimates of $2.68, but down 21% from last year's $4.75 (ex-charges) EPS. The reason for the rebound was stronger top-line growth which at $7.93 billion, was the best print in one year, if still down 12.5% from a year ago. 

Goldman Earnings Plunge 55% In Worst Quarter Since 2011; Average Compensation Crashes

There was some hope that after a better than expected result from JPM and, to a lesser extent MS and WFC, that Goldman would surprise to the upside. That did not happen even though the company moments ago reported EPS of $2.68 beating expectations of $2.48, which nonetheless was a 55% plunge in earnings from a year ago.  But the real story was in the company's revenue which printing at $6.4 billion was not only a huge miss to expectations of $6.7 billion, but a massive slide of 40% from Q1 2015 driven by top-line weakness across the board. This was the worst revenue quarter for Goldman since Q4 2011.

Peak Online Lending? SoFi Starts Hedge Fund Just To Buy Loans From Itself

Concerns about the health of the US economy and the true state of the labor market will likely mean that demand for marketplace-backed paper won’t exactly be what one would call “robust” going forward. Of course that’s a problem for lenders like SoFi, which pools its loans and sells them to free up space on the books for still more loans. But don’t worry, because SoFi - which originates billions in personal loans - has an idea...

Goldman Posts Worst Q4 Revenue Since 2011; Average Comp Rises To $344,511

Looking at Goldman's topline, we found that in the fourth quarter the bank had generated only $7.3 billion in revenue, a 5.4% drop from a year ago, and underscoring just how difficult the environment is even for the bank that does god's work, this was the weakest Q4 revenue from Goldman since 2011.

The Fixed Income Bloodbath Continues: Wall Street Harbinger Jefferies Reports Another Terrible Bond Trading Quarter

Earlier today Jefferies reported another quarter in which its Fixed Income revenue could best be described as dismal: Fixed Income posted a nominal $8.4 million in revenue: a whopping 83% collapse from the already subdued $48.6 million a year ago.  The biggest irony is that while other banks are clamoring to be allowed to "prop trade" again, Jefferies which has had the green light to do just that as it never got an FDIC bailout and remains the only sizable pure-play investment bank, just got crushed precisely due to its junk bond prop trading.

China Unleashes Perfect Storm Of Bad News Prompting Stock Market Plunge

From witch hunts to corporate defaults to abysmal data, Friday marked a rather unceremonious end to the week for China, as a veritable perfect storm of bad news sent the SHCOMP reeling. Unfortunately for China's day trading masses the plunge protection team was, like Guotai Junan International Holdings’ CEO Yim Fung, "missing" in action.

How We Got Here: The Fed Warned Itself In 1979, Then Spent Four Decades Intentionally Avoiding The Topic

At least parts of the Fed all the way back in 1979 appreciated how Greenspan and Bernanke’s “global savings glut” was a joke. Rather than follow that inquiry to a useful line of policy, monetary officials instead just let it all go into the ether of, from their view, trivial history. But the true disaster lies not just in that intentional ignorance but rather how orthodox economists and policymakers were acutely aware there was “something” amiss about money especially by the 1990’s. Because these dots to connect were so close together the only reasonable conclusion for this discrepancy is ideology alone. Economists were so bent upon creating monetary “rules” by which to control the economy that they refused recognition of something so immense because it would disqualify their very effort.

Morgan Stanley Q3 Earnings Crash, Revenues Miss By $1.2 Billion; Volatility And Burst Chinese Stock Bubble Blamed

While the big TBTF banks managed to hide much of their ugly balance sheet exposure, and prevent it from hitting the income statement in Q3 as reported previously, while covering up prop trading losses as well as they possibly could, the banks without trillions in deposits were less able to do so: first it was Jefferies, then Goldman posted its worst quarter in years, and now here comes the bank also known as Margin Stanley, which moments ago reported Q3 EPS of $0.34, which even if adjusted for various "one-time" items, at $0.48, not only missed consensus of $0.63 wildly, but it also missed the lowest range of the estimate range ($0.53-$0.70).

Goldman Suffers Terrible Quarter After FICC, Prop Trading Revenues Plunge; Banker Comp At Five Year Lows

Once again, Jefferies' one-month early glimpse at Wall Street trading revenues proved to be spot on. After the boutique mid-market banks reported a total collapse in fixed income trading revenues (which ended up negative following massive charge offs), everyone was looking at the biggest hedge fund among the TBTF banks - Goldman Sachs - to see just how bad the trading environment really is. The answer came moments ago, and the answer is bad. Very bad.