Bank results suffer after May volatility
Short volatility positions contribute to poor equity derivatives results
A number of major equity derivatives dealers endured a torrid second quarter after volatility spiked in May. The second-quarter results of Bank of America Merrill Lynch (BAML) and Goldman Sachs, and first-quarter results of Nomura revealed large drops in net revenue for equities, with all three dealers citing severe moves in volatility as the primary cause.
The results back up widespread rumours that have been circulating among rival dealers since May, when equity markets were hit by a
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