Banks enjoy LTRO trading boost

Analysts upgrade first quarter revenues, after January proved to be the best month for credit trading for two years

Investment banks could see a much-needed rebound in revenues in their long-troubled fixed income, currencies and commodities divisions in the first quarter, following a flood of cheap liquidity provided by the European Central Bank’s Long Term Refinancing Operation.

Revenues for the first three months of the year could almost double quarter-on-quarter, according to analysts at Morgan Stanley.

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