Wall Street banks have had a tough start to the year.
Goldman Sachs bank analyst Richard Ramsden said in a note Monday that the first quarter could be the weakest in recent history for capital markets revenues.
He projected capital markets revenues will be down 15% year-on-year for the first quarter.
"The combination of higher volatility, wider credit spreads, lower equity valuations, and uncertainty around the trajectory of economic growth across the globe has created a very tough environment for the capital markets business to start the year," the note reads.
Ramsden also attributed it to slowing issuance and a tough comparison period. Capital markets revenues in the first quarter of 2015 were up 6% from the previous year.
Goldman Sachs
He predicted a 17% decline in investment banking division revenues, a 13% drop in equities revenues, and a 15% decline in fixed income, currencies, and commodities revenues.
Several banks have begun downsizing their fixed income divisions and laying people off. Morgan Stanley, which Ramsden expects to report at 21% decline in FICC, reduced its headcount by 25% in that division.
Deutsche Bank is also laying off 75 traders in that division on Monday.