Bank of America's credit trading turnaround slow to start after leadership changes
Bank of America's macro traders were the stars of its markets business in the first half of 2025, as FICC trading revenues rose by 12% year-on-year. The success of BofA's FICC team waned towards the end of the year, but macro traders don't appear to be the culprits.
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In Q4, Bank of America's FICC revenues increased a mere 1.58% year-on-year. Aided by a similarly underwhelming Q3, this dropped the increase in yearly FICC revenues to 7.88% in 2025. JPMorgan, by contrast, had a double-digit revenue increase of 12.29% in FICC for the year. Despite petering out at the end, BofA's presentation said the FICC team's marginal revenue increase was "driven by improved performance in macro products."
The macro team also increased its proportion of total yearly FICC revenues from 55% in 2024 to 58% to 2025. Credit wasn't doing particularly well at the start of the year, with revenues down 2.5% year-on-year in H1, and the implication is that the last few months have been similarly challenging.
BofA notably restructured its markets business in November after its previous head of markets Jim DeMare was promoted to co-president. Matt McQueen, an MD of 17 years at BofA, was made global head of micro products, including credit, mortgages and municipals. BofA's previous head of credit trading, Brian Carosielli, was promoted into a pure sales role; he now runs all sales within BofA's global markets team. There doesn't appear to have been an instant turnaround under McQueen, but the next quarter (his first full one in the role) might be a better indicator of progress.
The bank's equities team had a more triumphant end to the year; revenues were up 23% year-on-year in Q4, bringing the increase in total yearly revenues to 15.71% in 2025. The bank credited its equities success to "increased client activity," which may have something to do with DeMare's replacements at the top of the markets division both being former sales guys.
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