645 Million Reasons Why This Investment Bank May Be Turning a Corner
Earnings season is underway, with Jefferies Financial Group (NYSE: JEF) as the first to provide insight into how other financial companies may report earnings this season. Jefferies specializes in investment banking, and its earnings can give us a clue about how capital markets are doing for major deals and issuances.
The bank's third-quarter earnings underwhelmed compared to what experts expected. However, the bank provided a glimmer of hope that the capital market recovery could be underway. Here's what investors learned from Jefferies' earnings and what it could mean for the stock moving forward.
Investment banking boomed in 2021, and the industry celebrated record fees on a flurry of initial public offerings, debt issuances, and mergers and acquisitions. According to data from Refinitiv, investment bank fees of $160 billion were the highest on record going back two decades. That year, Jefferies earned $4.42 billion from investment banking, its best earnings ever.
Source Fool.com
