The tough times in fixed-income land continue, with Jefferies' (LUK -0.6%) global head of leveraged finance and global head of sponsors both exiting as the bank merges its junk-rated loans and bonds business with the junk debt unit of its JV with MassMutual Financial, according to Reuters.
Banks of late are having trouble moving junk-rated product, including November's failure by Jefferies and others to syndicate the loans to Carlyle Group for its $8B purchase of Symantec's Veritas.
Jefferies frames the moves as a way to boost efficiency and focus on clients, rather than in response to troubled deals.
The bank has been a beneficiary of D.C.'s new regulatory regime because it doesn't come under the oversight of the Fed, OCC, or FDIC. It ranked second last year for leveraged buyout financing with a 7.8% market share.
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