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What you need to know on Wall Street today

Oct 3, 2018, 22:57 IST

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A senior trading exec at Goldman Sachs explains why he's so worried about the coming turn in a $9 trillion market

If you're one of the most senior trading executives on Wall Street, what keeps you up at night?

For Justin Gmelich, the chief operating officer of Goldman Sachs's fixed-income trading unit, it's recent changes to the functioning of the US corporate bond market. Gmelich, who spoke Tuesday on a panel at the Securities Industry and Financial Markets Association's conference in Washington, said the recent proliferation of products for investing and trading corporate bonds have altered the market in ways that haven't been fully tested.

"The genie is out of the bottle, we're not going back in any way, shape or form," Gmelich said. "The way we commit capital, provide liquidity, has changed materially since, let's call it 2008."

Here's how much the top Wall Street banks have earned in dealmaking fees this year

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While M&A volumes are exploding in 2018, Wall Street dealmakers are still seeing a slight decline in overall fees.

Global M&A activity totaled $3.3 trillion in the first nine months of the year, which is up 37%, according to Refinitiv, which is the former Thomson Reuters Financial & Risk business.

Yet worldwide fees from investment banking were down 5%, reaching an estimated $76.6 billion during that time period.

That's because most bankers don't get paid until the deals they've worked on actually close which happens once the companies have achieved regulatory and shareholder approval for their transactions.

Greg Fleming's Rockefeller Capital has poached a senior investment banker from Bank of America Merrill Lynch as it ramps up dealmaking with rich clients

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Wall Street rainmaker Greg Fleming continues to poach talent away from top-tier investment banks as he bolsters the roster at Rockefeller Capital Management, this time landing a top industrials banker from Bank of America Merrill Lynch.

Mitchell Theiss, previously chairman of global industrials at Bank of America, is joining Rockefeller Capital as vice chairman of the strategic advisory business and a member of the operating committee, the firm announced Wednesday.

He spent 19 years at Bank of America and before that worked a decade in investment banking at Goldman Sachs.

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