Did This Investment Bank Just Give a Warning?
After wheeling and dealing throughout 2021, investment banks face an uphill battle this year. The S&P 500 and the Nasdaq are in bear markets, and volatility across financial markets has weighed on dealmaking activity this year.
Jefferies Financial Group (NYSE: JEF) was the first major investment bank to deliver its second-quarter results -- and its report could be flashing warning signs about what we'll see when its peers post their numbers in July.
Jefferies Financial Group advises clients on mergers and acquisitions and helps companies raise money through initial public offerings (IPOs) or by issuing debt. The financial services company's fiscal second quarter ended May 31. Net revenue in the quarter dropped 30% year over year to $1.4 billion, with much of the decline due to lackluster results from its equity and debt underwriting units. Net income for the firm dropped 68%.
Source Fool.com
