Knight Said To Agree To Sell Debt Brokerage to Stifel Financial

For Sale

Knight Capital Group, the market maker that’s being acquired by Getco LLC, plans to sell its credit-brokerage unit to Stifel Financial, according to six people with knowledge of the matter.

Bloomberg reports that the team includes investment-grade, high-yield and asset-and mortgage-backed debt brokers in the U.S. and Europe, said the people, who asked not to be identified before an announcement set for as soon as Monday.

Knight hired Bank of America to help sell the debt unit after the Jersey City, New Jersey-based firm’s computers generated a flood of errant orders last year that brought it to the brink of bankruptcy. Stifel, which has spent at least $1.7bn on 24 acquisitions since Ron Kruszewski became chief executive officer in 1997, is seeking to grab a bigger share of the debt-brokering business as rivals retreat with lower yields and volatility reducing commissions.

'There’s this huge consolidation' of U.S. regional and local brokerages that cater to mid-size companies, Kruszewski, 54, said in an interview last month at the firm’s St. Louis headquarters. His goal is to build Stifel into a 'bigger version of what we are today' by adding employees and letting the balance sheet grow along with it, he said.

Hit the link below to access the complete Bloomberg article:

Knight Said to Agree to Sell Debt Brokerage to Stifel Financial

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image: © Valerie Everett

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