Jefferies group is to merge its junk-rated loans and bonds business with the junk debt unit of its joint venture with MassMutual Financial Group, according to people familiar with the matter. The move marks the biggest reorganisation by a US investment bank since the leveraged finance markets seized up last year. As a result, Kevin Lockhart, global head of leveraged finance, and Adam Sokoloff, global head of sponsors, have left Jefferies, the sources said, asking not to be identified as the moves have not been announced. A spokesman for Jefferies, a unit of leucadia national corp, declined to comment. Sokoloff did not respond to a request for comment, and Lockhart could not be reached. Banks have had trouble selling debt related to leveraged buyouts since late last year. Junk bond markets seized up on concerns about the prospect of higher interest rates, the health of the US economy, and how those two factors would affect companies with the shakiest financial footing.
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