Dealmakers bring home the bacon.
Jefferies Group’s two major businesses keep sliding further away from each other, highlighting the firm’s transformation from a trading bellwether into more of a dealmaking shop.
Bloomberg News reports that fees from advising on mergers and selling new securities increased for the seventh time in a row. The surge defied a slowdown at Jefferies’s bigger rivals, and pushed profit higher than one analyst’s estimate. Trading comprised just 37% of the company’s revenue in the three months ended May 31, dropping for a fifth straight quarter.
Jefferies has been building up its advisory and underwriting businesses over the past several years in an effort to reduce volatility in its results. The firm’s parent company, led by CEO Richard Handler, changed its name in April from Leucadia National Corp. to Jefferies Financial Group Inc. as it sold off most of its meatpacking and auto-dealer businesses to focus on financial services.
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