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Analysts aren't expecting larger investment bank rivals to match the swings Jefferies Group LLC reported in its fixed-income trading and equity underwriting businesses.
Jefferies reported Dec. 19 that its combined underwriting and advisory revenue increased 27.4% year over year to $528.7 million thanks in part to equity capital markets revenue increasing 97.2% to $122.4 million in the company's fiscal fourth quarter. During the same period, Jefferies' trading revenue fell 11.1% to $289.1 million driven by fixed-income trading dropping 36.6% to $94.7 million.
Jefferies, a subsidiary of Leucadia National Corp., ends its fiscal year Nov. 30 and typically reports quarterly results roughly a month before most of its investment banking peers. Analysts often view Jefferies' results as an indicator to earnings results that other investment banks will report.
Fitch Ratings Senior Director Justin Fuller said he doubted the larger investment banks would see as large of a jump in equity underwriting as Jefferies did during...