Jefferies Group Inc. (JEF), which faced investor concern that its European holdings would cause losses last year after the collapse of MF Global Holdings Ltd., cut a bet against Spanish debt in the fiscal second quarter.

Jefferies’s so-called net exposure to Spain was negative $31.9 million when the quarter ended May 31, according to a report filed yesterday by the New York-based firm with U.S. regulators. That figure reflects ties to sovereign issuers, corporations, financial institutions and mortgage- and asset- backed securities and derivatives. The company previously said it had a net short position -- or bets asset prices will decline -- of $58.8 million on April 5.

Jefferies’s shift on Spain lowered its total net short position on five European nations -- also including Portugal, Ireland, Italy and Greece -- to $125.4 million at the end of the second quarter, according to the filing. The investment bank had reported a $192.8 million net short position the previous period.

To contact the reporter on this story: Keith Jenkins in London at kjenkins3@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net