Jefferies earnings indicate that jumbo trading profits are coming for Wall Street, exacerbating an already grim economic side effect of Covid-19, writes johnsfoley.
Jefferies Group, the investment banking unit of Jefferies Financial, reported $129 million of earnings for the three months ended May 31, a 17% year-on-year increase including record revenue from its capital markets business, which includes sales and trading.
The Wall Street firm made $493 million of revenue from trading fixed income securities, almost tripling from $173 million a year earlier. Underwriting revenue fell 21% to $205 million. For the first six months of Jefferies’ fiscal year, revenue increased 39% to $2.2 billion, and compensation costs increased 42% to $1.2 billion.
Chief Executive Richard Handler said the quarter had been “surreal” as a result of the coronavirus pandemic and its impact on markets. Jefferies Chief Financial Officer Peg Broadbent died of complications of the disease in March, and was succeeded by Teresa Gendron.
France Dernières Nouvelles, France Actualités
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