I always get confused about this. From my understanding, they don’t have a balance sheet like the Bulge bracket banks and other banks such as RBC and Wells. But I have also heard that they are really good at LevFin and can work on deals that some other banks can’t because of regulations etc. would someone in the know be able to clear this doubt up for me? Does it have a balance sheet, and if not, how is it so good at LevFin?
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Curious too
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Jefferies has a JV with Mass Mutual; they call it JFIN where Jefferies Finance is able to originate and syndicate senior secured debt to middle market companies.
Misread, delete.
This is exactly right
Having a balance sheet and having what this website calls a "Balance Sheet" within the context of capital markets is totally different. Yes they have a balance sheet, yes they lend off of it, no its obviously not as large as a wells or jpm. Jefferies is similarly publicly traded so literally take a look at their balance sheet
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They have publicly available financial details... they’re public
Every corporation has a balance sheet so I don't understand this question lol. Their balance sheet has some similarities to BBs because they have a decent sized S&T and capital markets (including lev fin like you mentioned) division across FICC and equities (ie nothing like a purely advisory EB while also not near the scale of a Citi, JPM). I actually spoke to their Treasurer the other day who quite literally is in charge of managing their balance sheet haha. You are right that they can do things that bank holding companies cannot because of regulations but I wouldn't say their risk taking is necessarily too different.
Jefferies is one of the largest investment bank in the world by revenue (around $6 billion in 2019)...and while they don't have retail savings and checking accounts...they have access to institutional funds to loan as part of their deals with insurance companies...but not as cheap funding costs as JPM, citi, Bofa, WF, etc...
He's essentially asking if the firm underwrites and holds the lev fin deals they execute, or if its more so arranging the lev fin deals for other institutional investors to hold.....
complicated
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