Monday, June 15, 2009
Wall Street Revenue: Update
The above graphs contain activity through April. It certainly appears that investment bankers will be busier this year than last. However, it is a pale shadow of years past.
Please note the asset backed and non-agency mbs portion of debt underwriting. These figures are virtually non-existent. I believe it is impossible to have the vaunted V shaped rebound consumer spending without these debt markets. This also implies continued weakness in student loan origination.
These borrowers depended on the easy credit afforded to them by the securitization markets. Unless the federal government plans to start lending directly to the people, we will not see this activity again.