Investment Banking

Wall Street execs caution on dealmaking rebound even as investment banking fuels profit rise

A surge in debt capital markets activity has pushed dealmaking fees up, but it may not last

Investment banking fees have helped fuel a stellar quarter for Wall Street banks, but executives have preached caution on a rapid rebound
Investment banking fees have helped fuel a stellar quarter for Wall Street banks, but executives have preached caution on a rapid rebound Photo: ayfun Coskun/Anadolu Agency via Getty Images

Dealmaking fees helped bolster profits at Wall Street banks in the third quarter, but top executives have cautioned that M&A activity is still relatively muted and the debt underwriting boom that led to a surge in investment banking revenue may not last.

All the major Wall Street banks unveiled better-than-expected dealmaking revenue during the third quarter, with top executives saying that the pipeline of potential deals looks strong.

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