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Evercore sees softer third-quarter bank guidance as debt markets weigh on capital markets activity

9/6/2026

Capital markets activity fell short of expectations in July against the backdrop of a broad retreat in debt issuance, with overall investment banking volumes declining 6% year over year as lower debt capital markets activity weighed on the aggregate.

Evercore, in its August 2026 Capital Markets Monthly report, now expects banks' third-quarter investment banking and trading guidance to come in below consensus estimates.

Quarter-to-date performance indicators are running below where they would need to be to support current Street earnings-per-share forecasts, the firm said.

The divergence within the complex reflects the broader cycle and the current demand environment for debt. Debt capital markets and syndicated lending fell 18% year over year in July.