Here’s a cool chart that comes to us from Deutsche Bank’s “Equity House View” report. It captures the most productive businesses at the big investment banks as measured by revenue per employee.
As you can see in the upper right corner, trading the interest rates of the biggest countries in the world is a major moneymaker.
However, Deutsche Bank warns that it’s also a segment that will get hit hard by regulation.
“We think that G10 Rates (predominantly swaps and swaptions) is the most affected area,” they write. “We expect pre-and-post trade transparency and the shift to electronic venues to markedly reduce what was the largest revenue source for the investment banking industry in 2012.”