Bloomberg News reports that revenue from trading fixed-income securities in the fiscal second quarter ended May 31 rose to $238.5m, the investment bank said Tuesday in a statement. That’s the most in a March-through-May period since 2012. Net income fell 9.9% to $53.9m from a year earlier as fees from underwriting stocks and bonds declined by more than half.
“This was not a great trading environment but it was a normal trading environment without painful and violent swings,” Chief Executive Officer Richard Handler said in a phone interview. “You can’t say it’s all clear and the worst is over, but you can say there’s more stability and more natural client flow.”
Investors watch trading results at Jefferies to gauge how business is faring at bigger investment banks, which finish their quarters a month later. Shares of the company’s parent, Leucadia National, tumbled in March when Jefferies reported a slide in trading revenue that presaged declines at other firms. The second-quarter improvement bolsters the message other Wall Street executives have been telegraphing: Trading is pivoting from the first-quarter rout.
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