There are times when there’s more activity in commodities, there’s time when there’s more activity in credit, there’s time when there’s more activity in mortgages. It moves and it ebbs and flows, but what we’re really trying to do is to make sure we have the full package to serve them in the most effective way and we’ve made real progress in that over the course of the last couple of years. I think the opportunity for us to continue to make progress comes from the fact that in the top 150, I think we stand at slightly under top three with 117 of them, don’t hold me to that number exactly. It’s probably, okay, 117 of them. So, obviously, we have progress to make because there’s no reason why Goldman Sachs shouldn’t be top three with the overwhelming majority much closer to 90% of those 150.
And also when you look at top three, there are also clients where we’re third, where we absolutely should be first or second. And so we continue to drill down. We continue to go, talk to our clients, listen to our clients, get feedback on how we can do a better job serving them. And that discipline and that rigor, I think is helping us execute for them, but there’s more work to do and we don’t take our position for granted. We try to create the right culture of focus and intensity that allows us to continue to deliver and execute both.
Devin Ryan: Yes. Okay. Great. Thanks, David. Maybe a quick follow-up here for Denis. Just on the equity investments line, not a great quarter there, not a drag either. It feels like it’s been some time since we’ve seen maybe a more normal quarter without big puts and takes. And so just given the reconstitution of that book, how would you frame what a more normal quarter should look like from a revenue perspective? And then how the private portfolio is positioned if we are moving into a better exit environment. Obviously, it’s been tough there as well. Thanks.
Denis Coleman: Sure. Thanks for the question. So, a couple of things, and may have been embedded in your question. But obviously looking at some of the — on the progress in the equity investments line on a sequential basis. Just a reminder that in Q4 when we sold Personal Financial Management, that was reflected as a gain in equity investments of about $350 million that did not repeat. So that will give you some — some insight into how that’s trending sequentially. On a year-over-year basis, we are seeing performance in the private portfolio, sort of in line with what you’re suggesting we might expect. And what we did see a particular markdown in the public portfolio that sort of netted into the ultimate equity investment results.
We also, as you know, have been — have focused on selling down a portion of our historical principal investments. So a combination of the ultimate size of the notional remaining in our portfolio combined with what the market conditions are, will obviously contribute — contribute to the ultimate performance. The other guidance that we’ve put out there generally, medium-term guidance is that across both equity and debt investments, you’re looking at a number of about $2 billion on a year. So you could put that in the quarter, about $500 million. Those are some pieces of color I’d give you.
Operator: We’ll go next to Matt O’Connor with Deutsche Bank.
Matt O’Connor: Good morning. Actually, just to follow up on the last question and comment, the run-off of the historical principal investment from the $15 billion here, the $2 billion that you just referenced, is that the run-off that you expect, or was that alluding to the revenues per year?
Denis Coleman: Sure. Thanks. Let me clarify. I was making a comment with respect to revenue and then separately as it relates to the rundown of that portfolio, I guess the way to think of it, picking up questions from last earnings and/or this one. The progress that we made in the first quarter of roughly $1.5 billion, we think that’s decent assumption for the pace over the course of this year. And then we just reiterated our commitment to selling down substantially all of it in line with our target.
Matt O’Connor: Okay. So $1.5 billion per quarter is what you’re implying from here for the rest of the year?
Denis Coleman: On the historical principal investment portfolio, yes, we would expect something roughly in line with $1.5 billion per quarter for the balance of the year.
Operator: We’ll go next to Saul Martinez with HSBC.
Saul Martinez: Hi. Thanks for taking my questions. I wanted to ask about your financing business in Markets. And obviously, there’s uncertainty about the Basel end-game proposal. As you mentioned, the direction of travel seems to be for it to be materially lightened or even re-proposed. But one of the areas where it is very punitive versus other jurisdictions is in securities financing, the risk weightings for unlisted entities. And if that part of the proposal isn’t materially altered, it doesn’t seem like it necessarily is a focus, does that impact your ability to grow your financing revenues? Is it a threat? Is it not a big deal? Can you offset it through pricing, product design? Just curious if you can provide a little color on that.
Denis Coleman: Sure. So, obviously, where Basel III ends up and which components of the rule actually are put in place and how they’re drafted and how they’re calculated, et cetera, will be highly determinative. But I’d say the breadth of our financing activities across both FICC and Equity are much broader than that particular component. And we expect that the underlying demand from our clients for financing across both FICC and Equities will remain high. We have leading market shares and capabilities there. So we’ll expect to be able to deliver in that regard. And depending on where various pieces of regulation end up, we’ll make whatever adjustments we need, either to pricing or the mix of our businesses or look for other ways to serve our clients.
