Investment banks, which have already drastically downsized their trading units since the financial crisis – both in terms of headcount and exposure to riskier business lines – have plenty more to do, according to an influential report.

Analysts at Morgan Stanley - led by Huw van Steenis - and the consultancy Oliver Wyman - led by Christian Edelmann - published their annual assessment of the wholesale financial markets, entitled Wholesale Banks & Asset Managers: Learning to Live with Less Liquidity, on March 13.