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Goldman Caps Wall Street’s IB Bonanza With Huge Beats
"What does this mean for Goldman?"
That was the question on market participants' minds this week after the bank's rivals reported blockbuster investment banking results for the third quarter.
On Friday, Goldman answered. IB revenue for Q3 was $3.7 billion, up 88% and well ahead of consensus. Advisory net revenues were a record $1.65 billion, up 225% YoY (figure below).
The bank was #1 in M&A and equity-related offerings.
Overall, the $3.7 billion in IB revenue was the second most ever.
Goldman has many business it runs well and others, not so much. I have positions in eight Business Development Companies (BDCs). The only one having problems, and my biggest loser, is the BDC managed by Goldman (GSBD). While yield on the stock is very nice, two years worth has been swallowed by unrealized losses on the stock. I hope Soloman’s pronouncement that the outlook for all GS businesses was “good” is correct, but I won’t be holding my breath.
H-Man, not really a big surprise, all the major banks hit homeruns. Goldman just hit more. It may be related to that vampire squid.