A big trading business is haunting Wall Street
IMDB / Paramount Pictures
Corporate bond trading is proving to be a horror show for Wall Street banks.
Investors started the year worried about a potential rise in defaults by corporate borrowers.
Credit spreads spiked. Higher spreads mean bonds prices are falling, making for difficult trading conditions and potential mark-to-market losses on bank-trading books.
It's enough of a problem that it should turn up in quarterly earnings reports next month.
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