European bond sales this year have soared to around 1.7 trillion euros ($2.1 trillion), up 80% from 2019 and levels are expected to stay buoyant for years. The consequent rise in daily trading volumes has contributed to double-digit revenue growth in the investment banking business.
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“If anyone had known what was coming – any of the top 15 banks – they would have invested more in the sector because the fees have been big this year,” said a banker at a primary dealer for several European countries who declined to be named.
“(Being a primary dealer) has been an investment and it doesn’t always make us money,” he said, but added: “It helps our other franchises to say we are a leader in the rates markets – that’s the intangible benefit.”
The full article is available at https://www.reuters.com/article/uk-europe-bonds-debt-agencies-focus/europes-bond-boom-may-stem-investment-bank-exodus-from-sovereign-debt-auctions-idUKKBN28K1SZ