Cantor Cut to Junk by Moody’s on Capital Markets Pressure
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Cantor Fitzgerald LP, the investment bank planning to add 800 people, was cut to junk by Moody’s Investors Service as the ratings company said the expansion has failed to sufficiently boost profit.
The firm run by Howard Lutnick, which has increased the amount of money it commits to buy and sell bonds, was downgraded to Ba1, the highest level of speculative grade, Moody’s said today in a statement. Moody’s said it expects “the capital markets operating environment to be challenging for all participants for the medium term.”