- From outside the top ten previously, Jefferies (NYSE:LUK-OLD) jumped all the way to fifth in the rankings for underwriting buyout loans last year, according to Dealogic. Bloomberg data show since the start of 2014, Jefferies has managed more than $10B in loans for P-E sponsors which previously had relationships with other banks.
- What gives? Unlike most of this country's large commercial banks, Jefferies' hands aren't tied by post-financial crisis regulatory guidelines on leveraged loans.
- The banks aren't happy, and a large group have complained to regulators that deals they deem as too risky are getting done by Jefferies.
- "The rules are not fair to the regulated banks," says one money manager. "Markets adjust to what’s going on and participants like Jefferies step in to fill a void.”