Boutique investment bank Jefferies saw revenues from fixed income trading fall by 17% to US$280m in its first quarter ended February 28, compared with the same period a year ago.
The US Securities and Exchange Commission may be gearing up to regulate how investment banks allocate new bond issues, with the regulator launching an investigation into banks including Goldman Sachs, Citigroup and Morgan Stanley following complaints from investors.
A possible SEC investigation into how new bond issues are allocated has re-opened one of the longest-running debates in the capital markets: are bonds allocated to investors fairly?
- Fixed-income trading woes continue
- US warned over foreign bank rules
- US to clamp down on foreign banks
- Ending fire-sale risk falls to the Fed
- Hedge funds eye Puerto Rico bond offer
- New US rules set to shake up fixed income
- Detroit seeks rate swap relief