The new order on Wall Street

Bloomberg offers an interesting article that notes the big survivors on Wall Street--Goldman Sachs, Morgan Stanley and JPMorgan Chase--are benefiting from a return to tradition in a few ways: Spreads on bond and equity transactions are widening, and rates are up for vanilla corporate loans. They can be thankful for the thinning competition.

The widening of spreads is eye-catching in particular because of all the automated trading venues that have sprung up, including all those dark pools. But the trading environment has gotten so variegated that human beings are back in vogue, as long as you can work an order. The equity trader, a human commodity the last few years, is now enjoying a resurgence. It may well last, as the buy-side seems willing to go the human route. Of course it's a new world now, with commission agreements and all, but some will find it comforting. Perhaps this is a sign that Wall Street is getting back to its roots. 

For more:
- here's the Bloomberg article

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