Investment banks’ bond traders are under the cosh as the decades-long bull market comes to an end and new regulations squeeze their profitability.
As a result, banks are looking for ways to save money.
One of those is to replace expensive staff with machines wherever possible.
This chart from consultants GreySpark Partners shows banks have been investing heavily in electronic trading facilities for, in this instance, corporate bonds.
It shows an overcapacity of about 50 per cent in the market, and that can only mean one thing – serious job cuts are on the way.
The crisis is not over yet for fixed income traders.