Jefferies Dealmakers Extend Winning Streak as Trading Slumps
- Investment-banking surge contrasts with big-bank expectations
- Fixed-income trading revenue declines 23% from year earlier
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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.
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 percent of the company’s revenue in the three months ended May 31, dropping for a fifth straight quarter.