Merrill Lynch said the main drivers of the FICC net losses in the third quarter were write-downs of an estimated 4.5 bln usd related to the value of CDOs (collateralized debt obligations) and sub-prime mortgages.
The other driver were write-downs of an estimated 967 mln usd on a gross basis, and 463 mln usd related to all corporate and financial sponsor, non-investment grade lending commitments.
"Although the outlook for fourth quarter revenues remains difficult to predict, we continue to see evidence of strong long-term growth trends in each of our global businesses. While it is very early in the current quarter and despite continued challenges in structured finance, we are beginning to see signs of a return to more normal activity levels in a number of markets,"
