Securities Industry Financial Results 2Q’07

The U.S. securities industry reported 2Q’07 pre-tax profits of $8.6 billion, up 11.1% from the immediately preceding quarter and 14.2% above results in the same year-earlier period. Second quarter profits were the third best quarterly results on record, bringing half year results to levels not seen since the first half of 2000. Net revenues (total revenues minus interest expense) reached a new record of $62.5 billion in 2Q’07, 4.8% above 1Q’07 and 4.2% above the
previous record set in 4Q’06.

Middle Market Report 2Q’07

Middle market firm-led underwriting surged in the first half of the year to $249.2 billion, 27.0% above that recorded in the first half of last year. The year-over-year increase was led by securitization, agency debt and municipal issuance.

Credits

Research

• Charles Bartlett
• Marcelo Vieira
• Bryan Gross