The head of Swiss bank UBS’s investment banking business gave a cautious outlook for market conditions next year, with fees set to fall again and volatility staying low.
“Markets have moved into an environment of very low volatility, which is very difficult for us to manage,” Andrea Orcel said in an interview aired by Bloomberg Television.
He noted the investment banking fee pool would fall between 3 and 10 percent year on year in 2017. “Next year we don’t anticipate this to be a recovery. It will continue to come off, so this is an environment that is quite challenging for us,” he said.
“We continue to budget for an environment which is very much like 2017, low volatility, not very positive markets for us.”