Wall Street banks will see consensus activity taking place even after the record results

U.S. investment banks reported a record quarter, boosted by increased trading activity around the U.S. election and investment banking deal flow.

Traders at JPMorgan ChaseFor example, they have never had a better quarter quarter After seeing a 21 percent increase in revenue to $7 billion Goldman Sachs Stock trading generated $13.4 billion throughout the year – also a Record.

For Wall Street, it was a welcome return to the kind of environment desired by traders and banks after a period of muted activity as the Federal Reserve battles inflation. Banks including JPMorgan, Goldman and JPMorgan were upgraded by the Fed after the election of Donald Trump in November Morgan Stanley Easily maintained during the quarter.

But the great machine that keeps Wall Street moving is picking up steam. That’s because, hampered by regulatory uncertainty and high borrowing costs, U.S. corporations have mostly been on the sidelines in recent years, either buying competitors or selling themselves.

That is about to change, he says. Morgan Stanley With confidence in the business environment, including lower corporate taxes and easier approvals for mergers, banks are seeing merger support, said David Solomon, CEO of Ted Peake, Peake & Goldman CEO.

Morgan Stanley’s deal pipeline is “the strongest it’s been in 5 to 10 years, maybe even more,” Pick said Thursday.

Activity in capital markets, including debt and equity issuance, began to recover last year, rising 25% from depressed levels in 2023, according to Dialog figures. But without formal merger activity, the entire Wall Street ecosystem is missing a key driver of activity.

For investment banks like Morgan Stanley, multibillion-dollar acquisitions sit “at the top of the waterfall,” Peek explained.

This is because other transactions, such as senior loans, credit facilities or stock offerings, create the need for multi-million dollar assets for executives who need professional guidance.

“The last piece we’ve been waiting for is the M&A tickets,” Peek said, referring to the contracts that govern merger deals. “We’re excited to push this to the rest of the investment bank.”

Another engine of price creation for Wall Street is the IPO market, which has slowed in recent years — and that’s about to pick up, Solomon told an audience of technology investors and employees on Wednesday.

“There has been a meaningful change in the CEO,” Solomon said earlier in the day. “There is a significant backlog from sponsors and an overall improved regulatory backdrop will increase deal demand.”

After a few years, it should make for a profitable time for Wall Street traders and traders.