Institutional Client Services
The Institutional Client Services division at Goldman Sachs (GS) reported $5.46 billion in revenues for 1Q15. This was an increase of 23% compared to the prior-year quarter.
Higher net revenues in currencies, interest rate products, equities, and client execution produced strong results in both derivatives and cash products across all major regions. Significantly lower net revenues in credit products, commodities, and mortgages partially offset these results.
The first quarter also witnessed higher volatility in fixed income, currencies, and commodities. This resulted in more client activity, particularly in currencies and interest rate products.
Interest rate and credit products
Goldman Sachs provides a range of interest rate products:
- like government bonds
- treasury bills
- repurchase agreements
- money market instruments such as commercial paper and other highly liquid securities and instruments
- interest rate swaps, options, and other derivatives
The company’s credit products business offers the following services:
- investment-grade corporate securities
- credit derivatives
- bank and bridge loans
- high-yield securities
- emerging market municipal securities
- distressed debt
- trade claims
Also, GS engages in client execution activities related to making markets in mortgages, currencies, and commodities.
Goldman Sachs plays a major role in market-making activities for corporate institutions. The company faces competition in the segment from JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C), Credit Suisse (CS), Evercore Partners (EVR), Deutsche Bank (DB), and Greenhill (GHL). Together, these companies form 16.28% of the Financial Select Sector SPDR (XLF).