Strength in capital raising can help boost banks like Goldman Sachs in a tough lending environment
- Debt underwriting up by roughly a third year-over-year at several large banks
- Investment-banking fees in Q4 up about 3% year-over-year
- Trading and investment banking may be the best bet for banks in 2024
Wall Street ended last year on a less than stellar note, but there are some rays of sunshine amidst the challenges. Debt underwriting saw a significant increase of about a third year-over-year at several large banks, including Bank of America. Additionally, investment-banking fees in the fourth quarter, which include stock and bond issuance as well as advising on mergers and acquisitions, were up about 3% year-over-year. With lending and wealth management facing difficulties, trading and investment banking may prove to be the best bet for banks in 2024. However, uncertainties in politics, interest rates, and economic growth make the market outlook for the year uncertain.
Public Companies: Bank of America (BAC)
Private Companies: undefined
Key People:
Factuality Level: 7
Justification: The article provides some factual information about the increase in debt underwriting at several large banks and the growth of investment-banking fees in the fourth quarter. However, it also includes some speculative language and subjective statements, such as ‘trading and investment banking might prove to be their best bet in 2024’ and ‘the market enters a year of uncertainty for politics, interest rates and economic growth.’ Overall, the article contains a mix of factual information and subjective analysis, which lowers its factuality level.
Noise Level: 3
Justification: The article provides some relevant information about the increase in debt underwriting and investment-banking fees at Wall Street banks. However, it lacks depth and analysis, and the mention of ‘green shoots’ and ‘uncertainty’ without further explanation adds to the noise level.
Financial Relevance: Yes
Financial Markets Impacted: Investment banking
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the performance of investment banking fees in the fourth quarter, indicating the relevance to financial topics.
www.wsj.com 
