Jefferies sees fixed income trading fall

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Jefferies Group whose trading results are seen as a bellwether for Wall Street firms, said fourth-quarter revenue from that business fell 36% as fixed-income sank for a fourth straight quarter.

Bloomberg News reports that revenue from trading stocks and bonds dropped to $132.1m as fixed-income tumbled 83% and equities declined 22% in the three months ended November 30, the company said Tuesday in a statement.

Firmwide revenue slipped 2.2% to $513.1m. Gains from investment banking and lower costs helped push net income to $24.7m, compared with a loss in the prior year’s fourth quarter.

“Almost all our fixed-income credit businesses were impacted by the prolonged anticipation of the lift-off in Federal Reserve rate-setting, the collapse in the global energy markets (where we have long been an active adviser, capital raiser and trader), reduced originations in leveraged finance and meaningfully reduced liquidity,” Chief Executive Officer Richard Handler, 54, said in the statement.

To access the complete Bloomberg News article hit the link below:

Jefferies Trading Revenue Falls 36% as Fixed Income Tumbles

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