Jefferies winds down outsourced fixed-income trading unit - Bloomberg

Jefferies Financial Group Inc. is closing its outsourced fixed-income trading desk, abandoning a business it had previously sought to expand. Joram Siegel, the head of this unit, is departing the firm, according to a Bloomberg report citing informed sources. Siegel joined Jefferies at the beginning of 2024. The year prior, the company had been recruiting new traders for this service-oriented trading business, which caters to asset managers who lack the necessary resources for fixed-income execution.

The retreat signals the difficulties of broadening the outsourced trading business into new sectors. Jefferies had aimed to bolster this unit as part of its broader fixed-income operations. This decision represents a turnaround for the investment bank, less than two years after significantly expanding the team. As of now, Jefferies has not provided any comment on the closure of this business.

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