Goldman call: Competitor exits leave opportunity in fixed-income

"When you boil it all down, the 2013 environment is just one where the world took two steps forward followed by one step back," says Goldman (GS -1.6%) CFO Harvey Schwartz on the earnings call.

Responding to a question about any planned structural changes to the struggling fixed-income unit, Schwartz instead points to the opportunities awaiting Goldman as competitors (like Morgan Stanley) pull back. "We’ve been building a lot of operating leverage into our fixed-income franchise over the last couple of years."

Offered the opportunity to talk about client engagement thus far in the new year, Schwartz says its way too early to extrapolate anything.

As to the Volcker rule, Schwartz says Goldman's been prepping for it since Dodd-Frank passed in 2010. Once the final rule came to light, the company immediately established a "Volcker implementation team."

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