Investment Banking Recovery? Here's What One Company Says.
The surge in interest rates has had ripple effects across capital markets and the economy. Investors saw this last month when regulators shut down SVB Financial's Silicon Valley Bank, which faced massive losses on its bond portfolio due to higher rates, poor risk management, and mass withdrawals by depositors.
Another industry feeling pressure from higher interest rates is investment banking. Activity has plummeted, and very few companies have been going public through initial public offerings (IPOs). Mergers and acquisitions (M&A) deals are down significantly, too.
Jefferies Group (NYSE: JEF) is one major investment bank that recently announced earnings. Because its fiscal first quarter ended on Feb. 28, investors got a sneak preview of what to expect when other investment banks, like Goldman Sachs and JPMorgan Chase, announce later this month. Here's how Jefferies did this quarter and management's expectations in the near future.
Source Fool.com
