Core Insights - Jefferies reported a higher profit for the third quarter, driven by record advisory fees and a rebound in dealmaking activity [1] Financial Performance - The company experienced a significant increase in advisory fees, contributing to the overall profit growth [1] - The rebound in dealmaking indicates a positive trend in the investment banking sector, suggesting potential for continued growth [1]

Market Overview - The current market environment is characterized by a significant allocation of 70% of investments to the US, raising questions about whether to diversify into global markets due to the recent performance of the dollar [2][3] - The depreciation of the US dollar against other currencies is seen as an underreported story, influencing global investment strategies [4][5] Investment Strategies - Investors are considering reallocating funds to markets such as Japan, China, India, and Europe as a response to the dollar's weakness, although this does not imply a complete withdrawal from US investments [6] - The valuation of international markets appears more attractive due to currency movements, prompting interest in opportunities outside the US [7][8] Market Concentration - The US market is experiencing unprecedented concentration, with companies like Nvidia and Microsoft having market capitalizations larger than entire markets of other countries, except Japan [7][8] - The concentration of gains in the public markets among a few names is driving interest in private markets from both institutional and retail clients [9]

Core Viewpoint - Houlihan Lokey, Inc. has announced the appointment of John Guzzo as a Managing Director in its Financial Services Group, enhancing its Mortgage Services practice [1] Group 1: Company Developments - John Guzzo brings over 25 years of M&A and financial services experience to Houlihan Lokey [1] - Guzzo previously served as a Managing Director at Keefe, Bruyette & Woods, Inc., a Stifel company [1]

Core Insights - The investment banking industry is experiencing a rebound, with Evercore Inc. (EVR) and The Goldman Sachs Group Inc. (GS) gaining investor attention due to their services in mergers and acquisitions (M&A), capital markets, and wealth management [1] Group 1: Market Context - The year 2025 began positively, driven by expectations of a business-friendly Trump administration and potential deregulation, although proposed tariffs initially caused market volatility [2] - Deal-making activities have shown promise due to clarity on taxes, tariffs, deregulation, and corporates' pursuit of scale and competitiveness [2] Group 2: Goldman Sachs (GS) Overview - Goldman Sachs maintains a leadership position in global banking and markets, with investment banking revenues increasing by 24% year-over-year to $7.73 billion in 2024, continuing into the first half of 2025 [3][4] - The company is focusing on core businesses, retreating from underperforming consumer banking ventures, and exploring acquisitions to expand its asset and wealth management (AWM) footprint [5][6] - Goldman is expected to see revenue growth of 6.8% and 6.3% in 2025 and 2026, respectively, with earnings increasing by 15.1% and 14% in the same years [18] Group 3: Evercore (EVR) Overview - Evercore generates 94% of its revenues from Investment Banking and Equities, with a compound annual growth rate (CAGR) of 8.6% from 2017 to 2024, continuing into 2025 [7] - The company is actively increasing its staff to strengthen its investment banking footprint, with a focus on boosting its client base and diversifying revenue sources [8] - Evercore's revenue growth estimates for 2025 and 2026 are 17.4% and 25.4%, respectively, with earnings expected to rise by 34.5% and 76.9% [20] Group 4: Comparative Performance - Over the past six months, Evercore's shares surged by 72%, outperforming Goldman Sachs' 46.7% increase and the industry's 31.8% growth [10][11] - In terms of valuation, Goldman is trading at a forward price-to-earnings (P/E) ratio of 15.6X, while Evercore's is at 17.2X, indicating that Goldman is relatively less expensive [13][15] - Both companies pay dividends, with Goldman offering a yield of 1.99% compared to Evercore's 0.98%, giving Goldman an edge in dividend payout [15] Group 5: Investment Outlook - Evercore is positioned as a compelling upside play due to its pure-play advisory focus, aggressive hiring, and impressive growth trajectory, especially if M&A activity strengthens [23] - Despite a premium valuation and lower dividend yield, Evercore's superior growth potential justifies its valuation compared to Goldman [24] - Evercore holds a Zacks Rank 1 (Strong Buy), while Goldman has a 3 (Hold), indicating a stronger investment case for Evercore in the current market environment [25]

The biggest buyout on record was negotiated by two of Wall Street’s traditional M&A powerhouses https://t.co/SR0e5dr9gG ...

Key Takeaways Morgan Stanley's IB revenues rose 36% last year, aided by robust deal-making activities.Jefferies' IB fees jumped 51.6% in fiscal 2024, supported by mid-market advisory and capital markets.Analysts expect JEF's 2026 earnings to surge 70.8% versus steadier growth forecasts for Morgan Stanley.Investment banking (IB) is at the center of global capital flows, from multibillion-dollar mergers and acquisitions (M&A) transactions to high-profile IPOs. Among the sector’s key players, Morgan Stanley (M ...

Shares of the investment banking giant have been on a tear, up 54% over the past 52 weeks and 39% over the past six months. MS stock hit a fresh all-time high of $163.93 on Sept. 23, fueled by excitement over its E*Trade crypto initiatives.What sets Morgan Stanley apart is its disciplined approach to risk and its ability to ride market cycles with resilience. Diversified revenue streams and a strong brand reputation have made it a go-to for clients seeking stability and expertise. Over nearly a century, the ...

Citi Investment Banking head Biz Raghavan has emerged as a potential candidate to succeed. The current CEO, Jane Frazier. Raghavan has energised the division since his arrival last year, with the bank scaling the M&A advisory ranking and displacing rivals on recent deals.And this is something I think that a lot of investors and also probably viewers who work at Citi are very interested in. Daniel definitely assuming the ones on his floor currently watching on. Stay on that story bring in Bloomberg's chief W ...

Core Viewpoint - Goldman Sachs upgraded its stance on global equities to "overweight" from "neutral" for the next three months, citing improving economic momentum, attractive valuations, and supportive monetary and fiscal policies [1] Group 1: Global Equities - Global equities have reached record highs, driven by optimism regarding early interest rate cuts by the U.S. Federal Reserve, which are expected to prevent a recession [2] - The MSCI World Index has increased approximately 35% since its lows in April, recovering from a selloff due to recession fears [2] - Resilient corporate earnings and a dovish Fed have led brokerages, including Goldman, to raise year-end targets for the S&P 500, with Goldman increasing its forecast to 6,800 [3] Group 2: Market Dynamics - Equities typically perform well during late-cycle slowdowns when recession risks are low and policy support is strong, as evidenced by historical rallies in the late 1990s and mid-1960s [3] - Goldman Sachs downgraded its outlook on global credit to "underweight" from "neutral" for the next three months, citing late-cycle dynamics and stretched valuations as significant headwinds [4] - The firm also downgraded cash to "underweight" over the 12-month horizon, indicating that continued Fed easing is likely to lower cash returns further into next year [4]

All right. Uh, with a lot of concerns about a possible government shutdown, are you surprised at all to see futures moving higher. >> Not even a little bit.I've been through this with government shutdown talks so many times I've lost count. It is not a market factor at all, and it hasn't been the last dozen times it's happened. >> All right, that's a pretty definitive answer right there.So, David, your word of the day today is dividend. Are you saying that investors should focus more on dividend paying stoc ...