The record low interest rates that we've seen in the wake of the recession have been great news for big bond dealers. They will likely see killer profits--and none more so than Goldman Sachs (NYSE: GS), which is enjoying a banner quarter.

Fox Business News reports that "senior traders at rival firms say Goldman's traders are cranking out record revenues in trading bonds, taking advantage of record-low interest rates that has fueled a massive rally in the fixed-income markets." Indeed, speculation holds that the firm's revenue exceeded the level hit in the second quarter of last year, when it earned a massive $6.8 billion in fixed-income revenues.

UBS (NYSE: UBS) is also having a banner quarter, generating $2.3 billion in revenue. High-yield bonds seem to have been the biggest beneficiary. Bond funds are booming in general, but who knows when it will all end. Bill Gross (Bill Gross news) has warned that the historic, long-term bond rally may be nearing an end. 

For more:
- here's the Fox article on Goldman Sachs
- here's more from Bloomberg on UBS

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