Wall Street Banks Face Slimmer,Tougher Fixed Income Business

NEW YORK (Dow Jones)--When the financial services industry claws its way out of the wreckage of 2008, it will be looking at a leaner, meaner business.

Fixed income, in particular, is a worry. It has turned from steady drivers of income into devourers of revenue and profit. While most big banks will continue to feel the pain and some may drop out of the business, some smaller investment banks see an opportunity and are taking advantage of it to expand their bond business.

The excesses from a credit boom that fueled record earnings earlier this decade are still being wrung ...


Source: online.wsj.com