“On the day this week that UBS AG made the striking announcement that it is largely getting out of bond trading, the Swiss bank’s German rival, Deutsche Bank AG, said it reaped a windfall on the business.

“The banks’ differing fortunes sheds light on how the securities industry’s biggest business works and the wrenching changes it is undergoing. Even though most banks experienced a third-quarter bounce in the fixed-income business, a variety of factors, including regulatory changes that may crimp already modest returns, ultimately could prompt others to follow UBS’s lead.

“UBS, which has been buffeted in recent years by depressed markets and costly trading missteps, said on Tuesday that it is closing down most of its trading operation for fixed-income and related products as it focuses its investment bank instead on less risky businesses like advising on mergers and stock underwriting.”

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Read Dana Cimilluca’s full Wall Street Journal article here