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March 17 (Reuters) - Investment bank Jefferies Group LLC, owned by Leucadia National Corp, reported a 90 percent drop in quarterly profit, hurt by lower revenue from bond trading and investment banking businesses.
Net earnings attributable to Jefferies plunged to $11.7 million in the first quarter ended Feb. 28, from $112.4 million a year earlier, the company said on Tuesday.
“We experienced a slow first quarter due to a tepid fixed income trading market and fewer new issues in leveraged finance capital markets,” the company’s top executives said.
Revenue in the fixed income business dropped 56 percent to about $126 million. Bond markets globally have been volatile due to plunging oil prices and worries about Greece.
Revenue from the investment banking business fell 34 percent to about $272 million due to a big drop in bond issuance.
The company’s net revenue fell 34 percent to $591.7 million.
Jefferies, which kicks off the reporting season for investment banks, is often viewed as an indicator of the performance of Wall Street banks such as Goldman Sachs Group Inc and Morgan Stanley.
Shares of Leucadia fell 3.15 percent to $23.03 shortly after midday on the New York Stock Exchange.
Reporting by Neha Dimri in Bengaluru; Editing by Maju Samuel