Yesterday, FT Alphaville ran this chart, from a Tricumen report on the state of investment banking, as a fun game to add cheer to your Thanksgiving. We think the chart alone is a really cool display of who’s making money across the industry right now.
The chart is below, the bubbles are average product returns over the last four quarters. The bigger the bubble, the bigger the return.
Check out how tiny the securitization and prop trading bubbles are across the board. Credits and Rates, on the other hand, have huge bubbles. Naturally, JP Morgan and Goldman have the most healthy looking bubbles.
If that isn’t fascinating enough for you, here’s FT Alphaville’s game:
Print out, cover up the names at the bottom, and have your friends “invest” in the product mix of their choice, e.g. by placing a coin on the desired column of dots. Once you have placed your coins, look at the share price performance of each bank as given below. Performance is from end Q3 2010 to end Q3 2011. The person who does the best least bad wins.
And now, the chart:
Photo: FT Alphaville