Jefferies CEO Says ‘No One Is Under Pressure to Come Back’
Jefferies CEO Says Staff to Work From Home Until They Feel Safe
(Bloomberg) -- Jefferies Financial Group Inc. Chief Executive Officer Richard Handler, fresh off the firm’s record quarterly revenue from trading bonds despite the challenges of working remotely, is taking pressure off his traders and bankers to return to the office anytime soon.
“I am in awe of how our people became a virtual firm within days of learning about Covid,” Handler said in a phone interview Monday after posting results for the fiscal second quarter. “Our people will work from home until they feel safe coming back.”
Read more on Jefferies’ earnings: Bond-trading surges to record
Handler is emphasizing flexibility a week after larger rivals including JPMorgan Chase & Co. and Goldman Sachs Group Inc. began recalling the first waves of employees to their towers. His New York-based investment bank lost its longtime chief financial officer, Peg Broadbent, from coronavirus complications in the early weeks of shutdown that forced much of the industry to work at home.
“While we all want to come back,” Handler said, “no one is under pressure to come back immediately.”
The firm’s fixed-income and equity traders brought in $730 million in the three months ended May 31, almost double the amount a year earlier. While investment banking slumped 30%, Handler said some clients are considering “ambitious moves” in regard to mergers and acquisitions. Larger, less-leveraged firms will be the best-positioned to follow through on such deals.
Jefferies shares climbed 4.6% to $15.84 at 9:58 a.m. Tuesday, the best performance in the 66-company S&P 400 Financials Index. The stock has slumped 26% this year, matching the index’s decline.
Handler said trading continues to benefit from tailwinds.
“The volatility and the volumes have continued past our quarter-end,” he said. “Our bank has pivoted to helping our corporate clients get as much liquidity as they need to weather the storm.”
©2020 Bloomberg L.P.