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.
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.
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