Jefferies Group Inc. CEO Richard Handler said turmoil around the investment bank’s shares and publicly traded debt will ease as the fallout dissipates from the collapse of MF Global Holdings Ltd, according to Bloomberg.
“It is not surprising that our bonds are under pressure after the assault on our company over the past two weeks,” Handler said yesterday in an e-mail. “Some bond investors sell first and ask questions later. We expect the market to return to normal pricing once we move beyond the ripple effect of the inaccuracies others have recently disseminated and once investors digest all the information” that Jefferies disclosed.
Shares of the New York-based firm fell yesterday to close at their lowest since March 2009 and its bonds traded with junk- like yields that were double the level of mid-August. Jefferies came under pressure from short sellers after MF Global’s $6.3 billion bet on European debt led to an Oct. 31 bankruptcy and spurred scrutiny of similar stakes at financial firms.
Handler countered by detailing his firm’s European holdings and later cutting the positions by half. Still, the yield on some Jefferies debt hovers near 10 percent and analysts questioned whether the firm needs a more stable funding model….
Learn still more at http://www.bloomberg.com/news/2011-11-17/jefferies-ceo-sees-turmoil-easing-as-mf-global-comparison-fades.html
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