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A Barclays branch in London.
A Barclays branch in London.
(TOBY MELVILLE/REUTERS)

Fed’s retreat from QE only one reason for banks’ fixed-income woes

Staggering declines in fixed-income revenues at so many global investment banks have investors wondering why financial behemoths are suffering from the same sudden reversal of fortune.

Just before the financial crisis, and immediately after it ended, the fixed-income arms of major dealers such as Deutsche Bank and Citigroup brought in hundreds of billions in revenues annually. Halfway through 2013 the tables turned, and over the past few quarters the outlook has quickly deteriorated.