trending Market Intelligence /marketintelligence/en/news-insights/trending/SqlkWfs9mJL2XU5fy0zGSg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Goldman CFO: Commodities trading biz on track for worst performance since IPO

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Goldman CFO: Commodities trading biz on track for worst performance since IPO

Goldman Sachs Group Inc.'s commodities trading business is on track to see its worst full-year performance since the company went public in 1999, CFO R. Martin Chavez said.

The company's fixed-income, currency and commodities client execution business has struggled for several quarters now, and the slide continued into the third quarter. The segment's revenues were up slightly from the second quarter, which the company said was its worst quarterly performance ever for the business. But revenues from the business were still down 26% from the third quarter of 2016 at $1.45 billion.

"Our [fixed-income, currency and commodities] business improved, and that's obviously something that's good to see," Chavez said during the company's third-quarter earnings call with investors Oct. 17. "But it is, by no means, aspirational. We know we can do better. We know we need to do better."

Goldman Sachs pinned the segment's ongoing slide on the market's continued lack of volatility and low client activity, along with lower net revenues in commodities, interest rate products and credit products. Rate changes in the third quarter proved to be the "main driver" for the segment's sequential gain, Chavez said.

While revenues from the business continue to falter, Chavez said commodities inventory has proven to be a persistently negative factor for the business. In July, Bloomberg News reported that Goldman was undertaking an informal review of the business as it struggles to turn around results.

The company saw total net revenues for the third quarter jump to $8.33 billion from $8.17 billion in the year-prior period. Chavez said the commodities trading business' depressed results were offset by the company's investment banking and investment management divisions. For the third quarter, investment banking revenues were up to $1.80 billion from $1.54 billion a year earlier, while revenues in investment management jumped to $1.53 billion from $1.49 billion in the year-prior period.

Looking ahead, Chavez said macroeconomic changes like rising inflation, new central bank policies or regulatory changes could prove to be a catalyst for the business.