It's no secret that Goldman Sachs (NYSE: GS) has been enjoying a killer quarter in trading fixed income (fixed income news). Many are expecting blow out earnings for the first quarter precisely because of a huge spurt that flows from the epic bond market (bond market news). Other firms are taking advantage of the low rates-driven rally as well, notably UBS (NYSE: UBS).

But what about Goldman Sachs' traditional rival, Morgan Stanley (NYSE:MS)? Barclays Capital just lowered its estimate of core FICC from $2.4 billion to $1.9 billion. The main reason was weak equity business, both trading and commission; estimates were lowered for core equities from $1.3 billion to $940 million. You might think that this decline would be more than offset by strong fixed-income business, but the analysts do not appear to be projecting as much. We'll just have to see, but it may be that the bond market rally will not lift all ships, or at least not lift all equally. Stay tuned. 

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