Jefferies Q2 profit beats estimates on dealmaking rebound

June 26 (Reuters) – Jefferies Financial (JEF.N), opens new tab on Wednesday beat analysts’ estimates for second-quarter profit as the bank earned higher fees from advising on deals as well as underwriting stock and bond sales.

Its earnings, viewed as an early indicator of results at major investment banks such as Goldman Sachs (GS.N), opens new tab and Morgan Stanley (MS.N), opens new tab, underscore the strong recovery in the corporate dealmaking space.

Expectations of a soft landing for the U.S. economy have sparked a surge in large mergers and acquisitions (M&A) this year. Buyers are also selling bonds to fund their purchases, while a strong rally in equities has boosted investors’ appetite for new offerings.

Source: REUTER