Jefferies has made a big hire to its struggling fixed income business

Chris McReynolds, the former head of US Treasuries trading at Barclays, has started work at Jefferies as head of US rates, according to people familiar with the matter.

Jefferies declined to comment.

Bloomberg reported that he had left Barclays in September.

Rates trading ― which covers the trading of government bonds and interest rates swaps – was one of the more stable bits of the fixed income business in 2015.

Revenues across the top ten banks hit $13.9 billion through the first nine months of the year, according to data provider Coalition.

That was down 3% from the same period a year earlier. Compare that to a 33% drop in credit revenues (down to $9.3 billion) and 21% drop in securitisation revenues (down to $7.4 billion).

According to a survey carried out by recruitment firm Options Group late last year, 85% of those working in rates sales and trading said revenues were either on a par or ahead of target.

Jefferies’ fixed income business had a tough run broadly. The investment bank in December reported earnings of $25 million for its fourth quarter. Fixed income sales and trading revenues came in at $8.5 million, which compared with $123.7 million in equity sales and trading revenues and $372.9 million in revenues from M&A and equity and debt capital markets.

The distressed credit business was the primary source of pain, with the rates business McReynolds has joined recording “solid net revenues,” according to the firm.

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