Jefferies profit falls 83% on trading revenues

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Jefferies said Tuesday that profit plunged 83% in the fiscal third quarter as trading revenue fell to the lowest since the depths of the financial crisis.

Bloomberg News reports that net income for the three months ended August 31 dropped to $11.7m from $70.2m a year earlier, the New York-based firm said in a statement.

Revenue from fixed-income trading, a unit overseen by William Jennings and Johan Eveland, plunged 88% to $33.1m, bringing total revenue from buying and selling securities to $184.1m, the lowest since the fourth quarter of 2008.

'We experienced a very challenging summer in our fixed-income businesses due to the rising-rate environment, spread widening, redemptions experienced by our client base which heavily muted trading, and related mark-to-market writedowns within our inventory', Jefferies Chief Executive Officer Richard Handler, who also runs Leucadia, said.

Handler, 52, said earlier this year that Jefferies saw a significant slowdown in fixed-income trading during March and April resulting from concern about the tapering of the Federal Reserve’s bond-buying.

Hit the link below to access the complete Bloomberg article:

Jefferies Profit Tumbles 83% on Plunge in Bond Trading

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