Morgan Stanley and Bank of America on Wednesday reported third-quarter financial results that blew past investors’ expectations, thanks in part to their dealmakers’ and traders’ fortunes.
Mergers and acquisitions and initial public offerings are picking up, leading to busier times for bankers who underwrite deals, arrange financing, and advise management teams on transactions. A volatile market, meanwhile, has led to a fresh wave of activity on trading desks across Wall Street.
Bank of America said it is now on track to turn in a record year of sales and trading revenue. The firm said investment banking fees rose 43% to $2 billion, higher than the firm’s initial guidance, while debt- and equity-underwriting rose 42% and 34% from a year earlier, respectively.