Salomon Brothers

AAA

DEFINITION of 'Salomon Brothers'

Salomon Brothers, founded in 1910, was once one of the largest Wall Street bulge bracket financial service companies. In 1981, it was acquired by Phibro Corporation and became known as Phibro-Salomon. In 1997, the bank merged with Smith Barney, a subsidiary of Travelers Group to form Salomon Smith Barney. Immediately following, the bank merged with Citigroup, where Salomon Smith Barney served as the investment banking arm. In 2003, the Citigroup name was adopted.

INVESTOPEDIA EXPLAINS 'Salomon Brothers'

Although Salomon Brothers provided a wide range of financial services, the bank established its legacy through its fixed income trading department. Perhaps the original founding fathers of high yield bond trading, along with Drexel Burnham Lambert, the Salomon bond arbitrage group established the trading careers of John Meriwether and Myron Sholes.

Michael Lewis' Liar's Poker (1990) depicts the high pressure bond trading culture at Salomon Brothers.

RELATED TERMS
  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Liar's Poker

    A game often associated with Wall Street traders who use statistical ...
  3. Arbitrage

    The simultaneous purchase and sale of an asset in order to profit ...
  4. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
  5. Bulge Bracket

    A slang term used to describe the company or companies that issued ...
  6. Long-Term Capital Management - ...

    A large hedge fund led by Nobel Prize-winning economists and ...
Related Articles
  1. Insurance

    The Rise Of The Modern Investment Bank ...

  2. Professionals

    How To Make $1 Million In Finance

  3. Professionals

    Quants: The Rocket Scientists Of Wall ...

  4. Professionals

    Financial Career Options For Professionals

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center