Knight Capital Group (NYSE: KCG), parent company of Urban Financial, is looking to sell its fixed income business segments including its reverse mortgage unit, according to a report by the Wall Street Journal published Wednesday.
Citing sources “close to the company,” the WSJ reports that Knight has hired Bank of America Merrill Lynch to pursue a sale of the company’s bond-trading and reverse mortgage units.
“The effort to sell the two units would mark the biggest step so far to refocus Knight on its core business of buying and selling shares, following a years-long push by Chief Executive Officer Thomas Joyce to diversify into asset classes such as bonds and currencies,” the WSJ reports, also noting the layoffs of 40 employees from a base of 1,500.
Despite its strong reverse mortgage originations, WSJ writes, analysts have said the business as a large contributor to Knight’s performance overall.
The company agreed in late 2012 to be acquired by high frequency trading company Getco, a deal expected to close in the first quarter.
Knight declined a request for comment.
Written by Elizabeth EckerPrint Article