JPMorgan’s trading discipline

JPMorgan made more money than Goldman Sachs in bond trading in early 2026, even as Goldman took the bigger hit in the market’s most rate-sensitive desks. (jpmorganchase.com) (goldmansachs.com) In the first quarter ended March 31, 2026, JPMorgan’s fixed-income trading revenue rose 21% to $7.08 billion. Goldman Sachs’ fixed income, currency and commodities revenue fell 10% to $4.01 billion. (cnbc.com) (goldmansachs.com) Goldman told investors the weakness came from lower revenue in interest-rate products, mortgages and credit products. JPMorgan said its gain came from stronger activity in commodities, credit, currencies and emerging markets. (goldmansachs.com) (cnbc.com) Bond trading is the business of buying and selling Treasuries, corporate debt, currencies and related hedges for clients. When rate expectations swing fast, desks that manage inventory and hedges tightly can keep spreads and financing income without getting caught wrong-footed on big directional bets. (goldmansachs.com) (jpmorganchase.com) That quarter mattered because markets were volatile across rates, commodities and geopolitics, and big banks usually use that turbulence to lift trading revenue. Instead, Goldman’s fixed-income business missed analyst expectations by about $910 million, while JPMorgan posted its second-biggest fixed-income haul on record. (cnbc.com 1) (cnbc.com 2) JPMorgan’s edge was not only on the trading floor. The bank reported $25.5 billion in net interest income for the quarter, up $2.1 billion from a year earlier, and $23.3 billion in net interest income excluding Markets. (jpmorganchase.com) Net interest income is the spread between what a bank earns on loans and securities and what it pays on deposits and funding. A larger spread gives a bank more room to support client activity and hold positions without relying as heavily on one trading desk to carry the quarter. (jpmorganchase.com) (livemint.com) Goldman still had a strong quarter overall. The firm reported $17.23 billion in net revenue, $5.63 billion in net earnings and record equities revenue of $5.33 billion, which helped offset the bond-trading miss. (goldmansachs.com) (cnbc.com) Analyst Mike Mayo told CNBC that “a fire is being lit under” Goldman’s traders, managers and risk overseers after the underperformance. Goldman Chief Financial Officer Denis Coleman said the firm stayed active with clients, but performance in rates and mortgages was “relatively lower.” (cnbc.com) The comparison landed hard because Goldman has long been treated as Wall Street’s benchmark trading house, especially in stressed markets. In the first quarter of 2026, JPMorgan’s mix of higher fixed-income revenue, larger balance-sheet earnings and steadier execution produced the cleaner result. (cnbc.com) (jpmorganchase.com)