Wealth wishes: Continued macroeconomic activity and rising interest rates will boost industry revenue

Operators in the Investment Banking and Securities Dealing industry provide underwriting, originating, market-making services for a range of financial instruments including, but not limited to, bonds, stocks and derivatives. Industry revenue growth was hindered during most of the period to 2017 due to structural changes made to trading services that industry operators were permitted to conduct. During the early portion of the period, industry revenue was stymied as a result of declining fixed income, commodities and currencies (FICC) trading revenue. These changes have forced the industry's smaller operators to evolve. However, the industry as a whole is expected to continue benefiting from continued macroeconomic activity and rising interest rates over the five years to 2022...purchase to read more.

Industry Statistics & Market Size
Revenue
$131bn
Annual Growth 12-17
2.8%
Forecast Growth 17-22
Profit
Employment
112,368
Businesses
11,562

Industry Threats & Opportunities

  • Declining fixed income and FICC trading revenue have forced the industry’s smaller operators to evolve
  • Proprietary and off-exchange trading have led industry revenue growth to remain muted
  • The industry is expected to benefit from moderate growth in trade volumes, interest rate growth and continued growth in business activity
  • Industry Report - Industry Analysis Chapter

    While the Investment Banking and Securities Dealing industry remains below its prerecessionary levels, the industry has grown steadily over the five years to 2017. Operators in the industry primarily earn revenue from two broad product and service lines: traditional investment banking services (e.g. securities underwriting and corporate advisory services) and trading services. Over the five years to 2017, industry revenue is anticipated to increase an annualized 2.8% to reach $131.1 billion. The industry’s growth will largely stem from the value of initial public offering (IPO) increasing significantly in 2017. This coupled with other key macroeconomic factors such as rising interest rates are expected to lead industry revenue to increase a robust 14.7% in 2017 alone...purchase to read more.

    Additional Insights for the Investment Banking & Securities Dealing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Investment Banking & Securities Dealing Industry are

  • Market research and understanding
  • Access to a highly skilled workforce
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Investor uncertainty in the Investment Banking & Securities Dealing industry impact industry performance..

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    What's in this report

    What is the Investment Banking & Securities Dealing Industry?

    This industry is composed of companies and individuals that provide a range of securities services, including investment banking and broker-dealer trading services. They also offer banking and wealth management services and engage in proprietary trading (trading their own capital for a profit) to varying degrees. Investment banking services include securities underwriting and corporate financial services, while trading services include market making and broker-dealer services.

    Industry Products
  • Underwriting services (debt)
  • Trading and related services
  • Underwriting services (equity)
  • Advising fees
  • Loan Syndication
  • Industry Activities
  • Underwriting, originating or maintaining markets for securities issuance
  • Principal and proprietary trading
  • Providing corporate strategy advisory services
  • Providing corporate finance services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Investor uncertainty
  • S&P 500
  • Initial public offerings
  • Regulation for the Investment Management industries

  • Current Performance
  • Securities underwriting activities
  • Cyclical and structural influences on trading revenue
  • Smaller operators evolve
  • Chart: Revenue Growth

  • Industry Outlook
  • Cyclical and structural influences on trading revenue
  • Smaller operators evolve
  • Table: Investment Banking & Securities Dealing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Investment Banking & Securities Dealing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Reinsurance Carriers
  • Retirement & Pension Plans
  • Health & Welfare Funds
  • Open-End Investment Funds
  • Consumers

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Trading and related services
  • Advising fees
  • Underwriting services (debt)
  • Underwriting services (equity)
  • Loan Syndication
  • Other
  • Chart: Investment Banking & Securities Dealing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Financial operators
  • Energy and power operators
  • Healthcare operators
  • High technology operators
  • Industrial operators
  • Chart: Major Market Segmentation for the Investment Banking & Securities Dealing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesBrokerage, clearing and exchange feesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Investment Banking & Securities Dealing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Investment Banking & Securities Dealing Industry

  • Industry Globalization
    JPMorgan Chase & Co., Morgan Stanley, Bank of America Corporation, Citigroup Inc., The Goldman Sachs Group Inc.,
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Morgan Stanley - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: Citigroup Inc. - financial performance
  • Table: The Goldman Sachs Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Banking & Securities Dealing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Investment Banking & Securities Dealing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate Profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Initial Public Offering (Ipo)
  • When a company (called the issuer) issues common stock or shares to the public for the first time.
  • Leveraging
  • Investing with borrowed money, which can increase potential gains but also risks greater losses.
  • Market-Making
  • Buying, selling or otherwise transacting with customers under a variety of market conditions and providing prices in response to customer requests.
  • Tier 1 Capital
  • Secure and transparent core capital comprising equity capital and disclosed reserves.
  • Troubled Asset Relief Program (Tarp)
  • A program instituted by the US government to purchase assets and equity from financial institutions in order to strengthen the financial sector.
  • Volcker Rule
  • A specific section of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts US banks from making certain kinds of speculative investments that do not benefit their customers.
  • What Our Customers Say

    Why buy this report?

    The Investment Banking & Securities Dealing Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Investment Banking & Securities Dealing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Investment Banking & Securities Dealing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Investment Banking & Securities Dealing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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