Rising Interest Rates and Relatively Strong Capital Markets Will Benefit Raymond James

Raymond James' revenue and earnings held up fairly well despite the recent recession and bear market. The company’s institutional securities business benefited from COVID-19 in 2020 and 2021, as businesses raised capital to secure funding through the recession and trading volume increased. We expect capital markets and trading activity to pull back in the next year or two but remain relatively strong. After a drop in client assets in early 2020, client assets recovered along with the stock market and are now at a record levels, so Raymond James' wealth management business is doing well.