Wall Street Bond Desks Struggle as Equities Shine; Skydance Bonds Weaken

· Politics · United States

As Wall Street's fixed-income desks struggled in the third quarter, their equities rivals seized a rare opening to outshine them, Bloomberg Intelligence's Herman Chan said. Skydance Corp. bonds weakened further and the cost of protecting its debt against default jumped as investors fretted about profitability after its $110 billion acquisition of Warner Bros. Discovery. Meanwhile, China's bonds have dodged the global selloff, with some fund managers positioning for further gains due to a strong yuan and a sluggish domestic economy.

Why it matters：The divergence shows how shifting market conditions are reshaping Wall Street trading revenues and credit risk.

Key points

  • Fixed-income desks struggled while equities outperformed in Q3.
  • Skydance bonds weakened after its Warner Bros. Discovery deal.
  • China's bonds have dodged the global selloff.

Sources (original reporting)

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