Wall Street Banks Make a Play for Private Credit Trading

Wall Street banks are increasing efforts to trade private credit, despite the traditionally illiquid market. Banks such as Bank of America, Barclays, Goldman Sachs, and Morgan Stanley are establishing their own private credit trading efforts, with informal and formal approaches. The move is a bet that volumes will pick up, and the market is expected to become more robust. Trading private credit could be lucrative for banks, with fixed-income trading desks already generating significant revenue.