Jefferies brings in new recruit, causes split among traders

Jefferies brings in new recruit, causes split among traders

Wall Street investment bank Jefferies has recently sidelined a seven-year junk bond veteran to bring in a top trader from Citigroup — and has caused a split among some of its traders in the process, The Post has learned.

The bank has tapped ex-Citi executive Faraz Naseer to lead the bank’s high-yield debt trading group — and reduced the role for Timothy Sullivan, who had until recently led the unit, a source briefed on the changes told The Post.

Sullivan, who joined the bank in 2011, has helped helm the junk bond trading desk since 2014.

He was co-head with Tim Brennan from 2015 to December, when Brennan left the bank, according to broker records.

While Sullivan hasn’t been demoted, it’s unclear what his responsibilities are, according to the source.

Richard Khaleel, a spokesman for Jefferies, declined to comment.

Calls to Sullivan for comment were not returned.

The switcheroo at Jefferies junk bond desk comes about two months after the bank hired Gregory Miesner, a former Morgan Stanley managing director, to oversee sales, research and trading for loans and bonds alongside Joe Femenia.

Femenia is said to be a divisive leader at the bank, and he and Sullivan were not very fond of each other, according to the source.

Jefferies’ debt trading has been a volatile revenue source for the bank, which is led by Chief Executive Richard Handler.

Last June, the bank reported that its debt trading revenue had fallen by a third — a steeper dip than its peers experienced.

Since then, the bank’s bond-trading results have been choppy, while investment banking has been the stalwart to buoy the bank’s bottom line.

Leucadia, Jefferies parent company, announced last month that it would soon be exiting some of its portfolio investments, including meat retailer Western Beef, to focus more on investing.

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