This comes in the wake of the bank reporting a spectacular drop of 40% in its bond-trading revenues, which naturally has unnerved investors.
In the wake of increased pressure from big investors who have grown frustrated by Goldman Sachs’ vague explanations about its trouble, the company plans on plans detailing a turnaround in performance, at its core bond-trading unit next month, said sources familiar with the matter at hand.
The move breaks away from Wall Street’s tradition of not divulging its trading policies and practices. However, this was precisely the case last month, after Goldman reported a 40% decline in its bond-trading revenues, which has left investors in a shock.
During a conference call, Marty Chavez, Goldman’s CFO stated the bank had trouble “navigating” the markets but failed to provide specifics.
His vague explanation and the huge slump in revenues have unsettled investors.
“You were left with reading about what ’navigating the market,’ means and that doesn’t feel satisfying,” said Ian McDonald, a U.S. bank analyst at Janus Henderson, which owns 2.5 million Goldman shares. “Did they cut too deep on the bench? Are they not in a position to be taking on risk as much as peers?”
McDonald stated although he still has faith in Goldman’s trading prowess, he wants the bank to do a better job at communicating its strategy.
Ida Hoghooghi, Goldman Sachs’ spokeswoman declined to comment.