Tomahawk, WI 07/21/2014 (Basicsmedia) – Bank of America Corp (NYSE:BAC) has been passing through a trough, after it had posted exceptionally strong trading results in Q2-2014, owing to surprisingly active and interactive markets in June. However, anticipations should not lurch further higher, as the banks like BAC are of the opinion that the good times won’t last long and hence shall not continue.
Analysts are of the opinion that the bank’s instances of bond trading revenues have fallen off by 20% from the same, a year back! However, the aggregate drop for the top tier bank – Bank of America Corp (NYSE:BAC), was close to 10%. A myriad of investors and a host of analysts have spent a good value of their time watching, analyzing and percolating into the banks’ trading businesses; understandably, the units have impacts upon BAC’s earnings.
Policies And Growth
It is expected that the summer months – viz. July and August shall see slow-paced growth in comparison to other months, though June happened to be a very active month. Moreover, the European Central Bank has levied substantial cuts in the whopping interest rates and have announced a plethora of other initiatives to solicit loosened monetary policies.
There was only a relatively calm trading in Ukraine. The jobs and its veracity in the United States grew at a steady pace, spurring shifts pertaining to the sketchy outlooks fostering broader global economic advancement and ameliorated rates of interests.
In recent days, intensifying fights in the important Gaza Strip and gunning down of a Malaysian airliner in Ukraine, has seen investors flocking to the buy treasuries, as the last week came to its close. Macroeconomic changes are likely to spur activities consequently, pushing long term pressures on bond trading activities preventing volumes to rise too high!
New Rules Into Place
New rules are expected to be put into place that affects and bolsters leverage and liquidity, giving Bank of America Corp (NYSE:BAC) sumptuous incentives to hold a lesser number of bonds that incidentally trade list. The traditional banking operations would place BAC into benefitting parlances, as the US economy is slated for an improvement, being less prone to risky trading.