jef-20241130

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

520 Madison Avenue,

(Address of principal executive offices)

(Zip Code)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K


☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended November 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-5721

Jefferies Financial Group Inc.

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (212) 284-2300

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Shares, par value $1 per share	JEF	New York Stock Exchange
4.850% Senior Notes Due 2027	JEF 27A	New York Stock Exchange
5.875% Senior Notes Due 2028	JEF 28	New York Stock Exchange
2.750% Senior Notes Due 2032	JEF 32A	New York Stock Exchange
6.200% Senior Notes Due 2034	JEF 34	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934

during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such

files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth

company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any

new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal

control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that

prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the

filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation

received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Aggregate market value of the voting stock of the registrant held by non-affiliates of the registrant at May 31, 2024 (computed by reference to the last

reported closing sale price of the Common Shares on the New York Stock Exchange on such date): $8,458,821,477.

On January 17, 2025, the registrant had outstanding 206,094,699 Common Shares.

DOCUMENTS INCORPORATED BY REFERENCE:

Certain portions of the registrant's Definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934 in connection with the

2025 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.

Jefferies Financial Group, Inc.

Index to Annual Report on Form 10-K

November 30, 2024


PART I.	Page
Item 1. Business ............................................................................................................................................................................................................................	1
Item 1A. Risk Factors ...................................................................................................................................................................................................................	7
Item 1B. Unresolved Staff Comments .......................................................................................................................................................................................	14
Item 1C. Cybersecurity .................................................................................................................................................................................................................	14
Item 2. Properties ..........................................................................................................................................................................................................................	15
Item 3. Legal Proceedings ...........................................................................................................................................................................................................	15
Item 4. Mine Safety Disclosures .................................................................................................................................................................................................	15

PART II. FINANCIAL INFORMATION
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases Equity Securities .........................................	15
Item 6. [Reserved] .........................................................................................................................................................................................................................	16
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations .............................................................................	16
Consolidated Results of Operations ..................................................................................................................................................................................	17
Executive Summary ...........................................................................................................................................................................................................	17
Revenues by Source ..........................................................................................................................................................................................................	18
Non-interest Expenses ......................................................................................................................................................................................................	21
Accounting Developments ..................................................................................................................................................................................................	22
Critical Accounting Estimates .............................................................................................................................................................................................	22
Liquidity, Financial Condition and Capital Resources .....................................................................................................................................................	25
Risk Management .................................................................................................................................................................................................................	31
Item 7A. Quantitative and Qualitative Disclosures About Market Risk ................................................................................................................................	39
Item 8. Financial Statements and Supplementary Data .........................................................................................................................................................	40
Index to Consolidated Financial Statements ....................................................................................................................................................................	40
Management’s Report on Internal Control Over Financial Reporting ............................................................................................................................	41
Reports of Independent Registered Public Accounting Firm ........................................................................................................................................	42
Consolidated Statements of Financial Condition ............................................................................................................................................................	45
Consolidated Statements of Earnings ...............................................................................................................................................................................	46
Consolidated Statements of Comprehensive Income ....................................................................................................................................................	47
Consolidated Statements of Changes in Equity ...............................................................................................................................................................	48
Consolidated Statements of Cash Flows ..........................................................................................................................................................................	49
Notes to Consolidated Financial Statements ...................................................................................................................................................................	51
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ............................................................................	105
Item 9A. Controls and Procedures .............................................................................................................................................................................................	105
Item 9B. Other Information ..........................................................................................................................................................................................................	105
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. ..............................................................................................................	105

PART III. OTHER INFORMATION
Item 10. Directors, Executive Officers and Corporate Governance ......................................................................................................................................	105
Item 11. Executive Compensation ..............................................................................................................................................................................................	105
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters .......................................................	105
Item 13. Certain Relationships and Related Transactions, and Director Independence ..................................................................................................	105
Item 14. Principal Accountant Fees and Services ...................................................................................................................................................................	105

PART IV. EXHIBITS AND SIGNATURES
Item 15. Exhibits and Financial Statement Schedules ............................................................................................................................................................	105
Item 16. Form 10-K Summary .....................................................................................................................................................................................................	106
Signatures .......................................................................................................................................................................................................................................	107


1		Jefferies Financial Group Inc.

PART I

Item 1. Business

Introduction

Jefferies Financial Group Inc. (“Jefferies,” “we,” “us” or “our”) is a

U.S.-headquartered global full-service investment banking and

capital markets firm. Our largest subsidiary, Jefferies LLC, a U.S.

broker-dealer, was founded in the U.S. in 1962 and our first

international operating subsidiary, Jefferies International Limited,

a U.K. broker-dealer, was established in the U.K. in 1986. Our

strategy focuses on driving momentum in our full-service

investment banking business, bringing value to clients and

executing in our capital markets sales and trading businesses

and growing our Leucadia Asset Management alternative asset

management platform. We are always client focused first and

committed to integration and collaboration across our

businesses.

Our global headquarters and executive offices are located at 520

Madison Avenue, New York, New York 10022. We also have

regional headquarters in London and Hong Kong. Our primary

telephone number is 212-284-2300 and our Internet address is

jefferies.com where we make available, free of charge, our annual

reports on Form 10-K, quarterly reports on Form 10-Q and current

reports on Form 8-K and amendments to those reports filed or

furnished pursuant to Section 13(a) or 15(d) of the Securities

Exchange Act of 1934, as well as proxy statements, as soon as

reasonably practicable after we electronically file with the U.S.

Securities and Exchange Commission (“SEC”) and can also be

viewed at sec.gov.

The following documents and reports are also available on our

public website:

•Audit Committee Charter

•Code of Business Practice

•Compensation Committee Charter

•Corporate Governance Guidelines

•Corporate Social Responsibility Principles

•Reportable waivers, if any, from our Code of Business Practice

by our executive officers

•ESG, Diversity, Equity and Inclusion Committee Charter

•Health and Safety Policy

•Human Rights Statement

•Nominating and Corporate Governance Committee Charter

•Risk and Liquidity Oversight Committee Charter

•Supplier Code of Conduct

•Sustainable Investment Statement

•Whistle Blower Policy

We may use our website to disclose public information. We

encourage you to visit our website for additional information. In

addition, you may also obtain a printed copy of any of the above

documents or reports by sending a request to Investor Relations,

Jefferies Financial Group Inc., 520 Madison Avenue, New York,

NY 10022, by calling 212-284-2300 or by sending an email to

info@jefferies.com.

Business Segments

We report our activities in two business segments: (1) Investment

Banking and Capital Markets and (2) Asset Management.

•Investment Banking and Capital Markets provides investment

banking, capital markets and other related services to our

clients. We provide underwriting and financial advisory

services across a range of industry sectors in the Americas;

Europe and the Middle East; and Asia-Pacific. Our capital

markets businesses operate across the spectrum of equities

and fixed income products. Related services include prime

brokerage, equity finance, and research and strategy.

Investment Banking and Capital Markets also includes our

corporate lending joint venture (“JFIN Parent LLC” or “Jefferies

Finance”) and our commercial real estate finance joint venture

(“Berkadia Commercial Holding LLC” or “Berkadia”).

•Asset Management provides alternative investment

management services to investors globally. Through our asset

management efforts, we often seed or provide additional

strategic capital in the strategies offered by affiliated asset

managers in addition to investing for our own account. Our

Asset Management business also holds investments in public

securities and private companies, along with investments in

several consolidated subsidiaries whose operations consist of,

among other businesses, real estate development, online

foreign exchange trading and telecommunications. These

investments and holdings include the remainder of our legacy

merchant banking portfolio as well as other investments.

Our Businesses

Investment Banking and Capital Markets

Jefferies is one of the world’s leading full-service investment

banking and capital markets firms. Our Investment Banking and

Capital Markets segment focuses on Investment Banking,

Equities and Fixed Income. We primarily serve public companies,

private companies, and their sponsors and owners, institutional

investors and government entities. Our services are enhanced by

our relentless client focus, our differentiated insights and a flat

and nimble operating structure.

Investment Banking

We provide our clients around the world with a full range of

financial advisory, equity underwriting and debt underwriting

services. Our investment banking professionals operate in the

Americas, Europe and the Middle East and Asia-Pacific, and are

organized into industry, product and geographic coverage

groups. Our industry coverage groups include: Consumer; Energy

and Power; Financial Institutions; Financial Sponsors; Healthcare;

Industrials; Municipal Finance; Real Estate, Gaming and Lodging;

and Technology, Media and Telecom. Our product groups include

advisory (which includes mergers and acquisitions, sponsor

coverage, private capital and restructuring and recapitalization

expertise), equity underwriting and debt underwriting. Our teams

are based in major cities in the United States, as well as London,

Hong Kong, Amsterdam, Dubai, Frankfurt, Madrid, Melbourne,

Milan, Mumbai, Paris, São Paulo, Singapore, Stockholm, Sydney,

Tel Aviv, Tokyo, Seoul, Calgary and Toronto. We have continued

to invest in our investment banking business, significantly

expanding our professional talent base again since 2021 and

increasing our presence globally.


November 2024 Form 10-K		2

Advisory Services

We provide mergers and acquisition, debt advisory and

restructuring and private capital advisory services to companies,

financial sponsors and government entities. In the mergers and

acquisitions area, we advise business owners, private equity

firms and public and private corporations on mergers, sales,

acquisitions, divestitures, leveraged buyouts, cross-border

transactions, joint ventures, spin-offs and other corporate

restructurings. In the debt advisory and restructuring area, we

provide companies, bondholders, creditors and lenders a full

range of both in-court and out-of-court advisory capabilities to

help our clients enhance their financial position by obtaining the

best available capital and by executing complex restructuring

transactions. As part of our private capital advisory business, we

advise financial sponsors and their investors on the creation and

structuring of funds and fund offerings and primary and

secondary capital raising. We also advise large institutional

investors on the sale of private equity limited partnership and co-

investment interests.

Equity Underwriting

We provide a broad range of equity financing capabilities and

equity capital solutions to businesses and their owners. These

capabilities include initial public offerings, follow-on offerings,

rights-offerings, at the market offerings, block trades, private

placements and equity-linked products.

Debt Underwriting

We provide a wide range of debt capital raising and acquisition

financing capabilities to businesses, financial sponsors and

government entities. We help clients raise capital, carry out

refinancings, issue bonds, and access alternative and structured

finance solutions that optimize terms and minimize risk. These

offerings include both public and private debt, such as

investment grade debt, high yield bonds, leveraged loans,

municipal debt, emerging market debt, global structured notes,

preferred stock and mortgage-backed and other asset-backed

securities.

Other Investment Banking Activities

Jefferies Finance, our 50/50 joint venture with Massachusetts

Mutual Life Insurance Company, structures, underwrites and

syndicates primarily senior secured loans to corporate borrowers;

and manages proprietary and third-party investments for both

broadly syndicated and direct lending loans. Jefferies Finance

conducts its operations primarily through two business lines,

Leveraged Finance Arrangement and Asset Management. In

connection with its Leveraged Finance business, loans are

originated primarily through our investment banking efforts and

Jefferies Finance typically syndicates to third-party investors

substantially all of its arranged volume. The Asset Management

business of Jefferies Finance, referred to as Jefferies Credit

Partners, is a multi-strategy credit platform that manages

proprietary and third-party capital invested across commingled

funds, funds-of-one, separately managed accounts, business

development companies, collateralized loan obligations and

levered balance sheet funds. Broadly syndicated loan

investments are sourced through transactions arranged by

Jefferies Finance and third-party arrangers and managed through

its subsidiary, Apex Credit Partners LLC. Direct lending

investments are primarily sourced through Jefferies. Jefferies

Finance and its subsidiaries that are involved in investment

management are registered investment advisers with the SEC.

Berkadia Commercial Mortgage Holding LLC is our commercial

real estate finance and investment sales joint venture with

Berkshire Hathaway, Inc. Berkadia originates commercial and

multifamily real estate loans that are sold to U.S. government

agencies or other investors with Berkadia retaining the mortgage

servicing rights. In addition, Berkadia originates loans for its own

balance sheet. These loans provide interim financing to

borrowers who intend to refinance the loan with longer-term

loans from an eligible government agency or other third-party.

Berkadia is also a servicer of commercial real estate loans in the

U.S. performing primary, master and special servicing functions

for U.S. government agency programs and financial services

companies. In addition, Berkadia provides brokerage services,

asset review, market research, financial analysis and due

diligence support for multifamily real estate projects.

Strategic Alliance with SMBC Group

In July 2021, we entered into a strategic alliance with Sumitomo

Mitsui Financial Group, Inc. (“SMFG”), Sumitomo Mitsui Banking

Corporation (“SMBC”) and SMBC Nikko Securities Inc. (together

referred to as “SMBC Group”) to collaborate on corporate and

investment banking business opportunities, with an initial focus

on leveraged finance and cross-border mergers and acquisitions

involving Japanese companies.

In April 2023, we agreed with SMBC a significant expansion of

this alliance. This relationship provides us with enhanced client

capabilities and supports the continued growth of our global

investment banking and capital markets business. Under our

alliance, we, among other things, coordinate efforts in leveraged

finance to expand and scale existing offerings, seek cross-border

mergers and acquisition advisory opportunities involving

Japanese companies, and jointly pursue investment banking,

capital markets and financing opportunities by leveraging our

shared strengths and relationships. Additionally, as of the third

quarter of 2024, the CEO of SMFG serves on our Board of

Directors. At November 30, 2024, SMBC owns 15.8% of our

common stock on an as-converted basis and 14.5% on a fully-

diluted, as-converted, basis.

Equities

Equities Research, Capital Markets

We provide our clients leading advisory, differentiated distribution

and solution-based execution capabilities through equities

research and sales and trading across global equities markets.

These services are delivered with key capabilities in cash

equities, electronic trading, equity derivatives, convertibles,

corporate access and prime services. We deliver high touch

services and act as agent, principal or market maker to provide

clients with execution quality in varying liquidity situations—

providing clients with bespoke insights and execution informed

by our sector expertise. Our equities electronic trading business

provides our clients with local expertise and innovative electronic

trading solutions, including customizable algorithms. We bring a

full-service coverage model and customized solutions in equity

derivatives and financing solutions and our convertibles platform

is a market leading franchise.


3		Jefferies Financial Group Inc.

Commissions or spread revenue is earned by executing, settling

and clearing transactions for clients across these markets in

equity and equity-related products, including common stock,

American depository receipts, global depository receipts,

exchange-traded funds, exchange-traded and over-the-counter

(“OTC”) equity derivatives, convertible and other equity-linked

products and closed-end funds. Our equity research, sales and

trading efforts are organized across the Americas, Europe and

the Middle East and Asia-Pacific and we continue to strengthen

our global footprint throughout these regions. Our clients are

primarily institutional market participants such as mutual funds,

hedge funds, investment advisors, pension and profit sharing

plans, and insurance companies. Through our global research

team and sales force, we maintain relationships with our clients,

distribute investment research and insights, trading ideas, market

information and analyses across a range of industries and

receive and execute client orders.

Prime Services

Our Prime Services business provides a full-service offering that

includes financing, business consulting and capital introduction

services, a robust technology platform, outsourced trading

solutions for both start-up and existing managers, strategic

content and thought leadership. Our prime brokerage services in

the U.S. provide hedge funds, money managers and registered

investment advisors with execution, financing, clearing, financing,

swaps, outsourced trading and reporting and administrative

services. Our platform is fully self-clearing and provides global

access to markets across the world. We finance our clients’

securities positions through margin loans that are collateralized

by securities, cash or other acceptable liquid collateral. We earn

an interest spread equal to the difference between the amount

we pay for funds and the amount we receive from our clients. We

also operate a matched book in equity and corporate bond

securities, whereby we borrow and lend securities versus cash or

liquid collateral and earn a net interest spread.

Wealth Management

We provide tailored wealth management services designed to

meet the needs of high net worth individuals, their families and

their businesses, private equity and venture funds and small

institutions.

Fixed Income

Jefferies’ facilitates client activity by making markets in a wide

range of fixed income securities, loans and derivative

instruments to a large and diversified group of clients including

financial institutions and corporates. We offer clients real-time

actionable insights and differentiated high and low touch

execution as well as a range of financing solutions tailored to our

clients’ needs.

Our global capabilities across sales, trading and capital markets

cover credit products including loans, high yield and distressed

debt securities, investment grade securities, municipal securities,

structured finance transactions and trade and litigation claims.

Our emerging markets sales and trading team actively

participates in sovereign and corporate fixed income markets in

Latin America, Eastern Europe, the Middle East, Africa and Asia.

Our global structured solutions business provides customized

products in interest rates and foreign exchange to investors as

well as providing interest rate and foreign currency hedging

solutions to corporates. Our securitized markets group trades,

structures and provides warehousing solutions for collateralized

loan obligations (CLOs) and asset-backed securities covering

prime and non-conforming residential mortgage-backed

securities, U.S. agency residential mortgage-backed securities

and consumer as well as other non-traditional collateral.

Our interest rate product capabilities cover government bonds,

other government-backed securities and cleared interest rate

swaps. Jefferies is designated as a Primary Dealer for U.S.

government securities and is designated in similar capacities for

several European countries. Additionally, through the use of

repurchase agreements, we act as an intermediary between

borrowers and lenders of short-term funds and obtain funding for

various of our inventory positions. Our strategists and

economists provide ongoing commentary and analysis of the

global fixed income markets and provide ideas and analysis to

clients across our breadth of fixed income products.

Alternative Asset Management

Under the Leucadia Asset Management (“LAM”) umbrella, we

manage and provide services to a diverse group of alternative

asset management platforms across a spectrum of investment

strategies and asset classes. LAM offers institutional clients an

innovative range of investment strategies through its directly

owned and affiliated managers and offers investors opportunities

to invest alongside us. Our products are currently offered to

pension funds, insurance companies, sovereign wealth funds,

and other institutional investors globally. The investment

products under LAM range from multi-manager products to niche

equity long/short strategies to credit strategies, among other

strategies. We offer our affiliated asset managers access to

stable long-term capital, robust operational infrastructure and

global marketing and distribution. We often invest seed or

additional strategic capital for our own account in the strategies

offered by us and associated third-party asset managers in which

we have an interest. We continue to expand our asset

management efforts and establish further strategic relationships

to expand our offerings.

Other Investments

Our legacy merchant banking portfolio, managed by the co-heads

of Asset Management, includes Stratos Group International, LLC

(“Stratos”) (formerly FXCM Group, LLC, or “FXCM”), provider of

online foreign exchange trading services; Tessellis S.p.A.

(“Tessellis”), a telecommunications company publicly listed on

the Italian stock exchange; HomeFed LLC (“HomeFed”), (real

estate); investments in certain public equity securities; and other

investments in private companies and asset management funds.

Human Capital

Our people make up the fabric of our firm, which is comprised of

diverse and innovative teams. We are focused on the durability,

health and long-term growth and development of our business,

as well as our long-term contribution to our shareholders, clients,

employees, communities in which we live and work, and society

as a whole. Instrumental to all of this is our culture.

We have employees located throughout the world. As of

November 30, 2024, we had 7,822 employees globally across all

of our consolidated subsidiaries within our Investment Banking

and Capital Markets and Asset Management reportable

segments. Our workforce is distributed across our regions of the

Americas with 49.3%, Europe and the Middle East with 38.1%, and

Asia-Pacific with 12.6%. We employ 5,759 within our Investment

Banking advisory and underwriting businesses, Fixed Income and

Equities capital markets businesses, and alternative asset

management business. In addition, 2,063 individuals are

employees of our Stratos, Tessellis, HomeFed and M Science

subsidiaries.


November 2024 Form 10-K		4

During 2024, we have increased the number of our Investment

Banking Managing Directors and related staff, along with

additional technology and corporate staff to support our growth

and strategic priorities. We also expanded our global footprint by

hiring professionals into new locations, including Seoul and

Calgary.

Talent and Recruiting

In order to compete effectively and continue to provide best-in-

class service to our clients, we must attract and retain highly

talented professionals. Our core workforce is predominately

composed of employees in roles within investment banking,

sales, trading, research and other revenue producing and support

personnel for those businesses. During 2024, we hired 1,221 full-

time employees, with 784 in the Americas, 276 in Europe and the

Middle East and 161 in Asia-Pacific. Of the hires, 845 were made

laterally while 376 were hired directly from our campus recruiting

efforts. While our hiring of talent was largely in Investment

Banking, there has also been meaningful additional investment in

Equities, Fixed Income, Research, Alternative Asset Management

and our support areas. We believe our culture, our effort to

maintain a meritocracy in terms of opportunity and

compensation and our continued evolution and growth contribute

to our success in attracting and retaining strong talent.

We are focused on broadening the pipeline from which we recruit

and hire diverse talent through both campus and lateral hiring

initiatives. For campus recruiting, we have partnered with several

organizations globally to broaden our pipeline of candidates. We

host insight days and symposiums that describe Jefferies to

candidates that come from a diverse range of backgrounds and

experiences. In 2024, we welcomed 345 summer interns globally

from approximately 140 different colleges, universities and

business schools. We also hire off-cycle interns throughout the

year in Europe and the Middle East and Asia-Pacific. Our Global

Recruiting Policy, rolled out in 2024, requires a diverse slate of

candidates for all roles. Interviewing guides, training and other

resources are provided to hiring managers to support inclusive

hiring.

We have several recruitment programs aimed at diversifying the

pipeline of our campus and experienced hires. Through our

Jefferies Black & Latino Network (“J-NOBLE”) Fellowship

Program, we provide mentorship, internships and ongoing

development to students from diverse backgrounds and

experiences who aspire to pursue investment banking careers.

Since the program launched in 2019, 50 fellows have participated

in the program. Our MBA Fellowship Program, launched in 2023,

supports summer associates based on their outstanding

achievements and financial need. The MBA fellows in Investment

Banking are paired with a mentor at the Managing Director level

and provided developmental support. Our Equity Research Career

Switch Program is aimed at recruiting diverse individuals who are

interested in changing careers into equity research.

We value continued training and development for all employees.

We seek to equip our people at all stages in their careers with the

tools necessary to become thoughtful and effective leaders. We

offer customized, year-long training curriculums across all

divisions and title levels globally, focused on enhancing skillsets,

professional development and management best practices. Our

programs comprise both internal leaders and best-in-class

external experts facilitating our trainings. We also offer

mentoring initiatives, including our firmwide Cross-Divisional

Mentoring Program, Career Advisory Program, New Hire Buddy

Program, and Managing Director Mentoring. Additional

development programs include our two Women in Leadership

Programs, which provide learning and networking opportunities

to position our female leaders for success. Our Thrive as a

Leader leadership development program, sponsored by J-NOBLE,

Jefferies Ethnic Minority Society (JEMS), and JASIA (Jefferies

Asian Heritage) is aimed at providing professional development

and career advancement training to diverse participants at the

Vice President and Senior Vice President levels. To supplement

our in-person learning model, we also offer on-demand training to

all of our employees via a digital learning platform.

Wellness

In addition to training and development programs, we continue to

be focused on the mental and physical well-being of our

employees. We host global wellness webinars led by mental

health experts, provide confidential 1:1 wellness and nutritional

counseling, host monthly group fitness classes and offer a

variety of tailored wellness content for “Mental Health Awareness

Month” in May and “World Mental Health Day” in October. The

events for these two initiatives include training sessions with

world-class psychologists on managing stress and well-being,

supporting the mental health of friends, family and colleagues,

emotional regulation and physical fitness initiatives. In November

2024, we hosted our inaugural ‘wellness week’ throughout Asia-

Pacific comprised of mental and physical health initiatives.

Diversity, Equity, and Inclusion

The foundation of our culture is our approach to employee

engagement, diversity, equity, and inclusion (“DEI”), which is

summed up in our Corporate Social Responsibility Principle:

Respect People. We embrace diversity, which we believe fosters

creativity, innovation and thought leadership through the infusion

of new ideas and perspectives. We have implemented a number

of policies and measures focused on non-discrimination, sexual

harassment prevention, health and safety and training and

education. We have strong internal partnerships engaging eight

global Employee Resource Groups that support a diverse,

inclusive workplace. Our Diversity Council, co-sponsored by Rich

Handler, our CEO, and Brian Friedman, our President, gives our

Employee Resource Groups a platform to come together and

discuss best practices, as well as collaborate on firmwide

diversity initiatives. Our DEI function has grown since our launch

in 2019 to include six full-time employees located in New York,

London and Hong Kong.

We have also made a commitment to building a culture that

provides opportunities for all employees regardless of our

differences. As a result, we are able to pool our collective insights

and intelligence to provide fresh and innovative thinking for our

clients. Our DEI strategy focuses on fostering inclusive

leadership, building diverse and inclusive teams, developing our

leaders, fostering community and belonging and client and

community engagement. Inclusive Leadership training is

extended to all employees and all new hires are required to

participate in the training. We are focused on improving the

collection and transparency of diversity metrics and the

information flow to senior leadership and utilize an annual

employee engagement survey, which enables employees to

provide feedback on an anonymous basis. Our 2024 participation

rate was 79% globally. Our annual Self-ID campaign also aims to

increase the collection of demographic data internally.

Our Board has an ESG, Diversity, Equity and Inclusion (“ESG/DEI”)

Committee, which, among other things, oversees the

sustainability matters arising from our business and includes

oversight over diversity and inclusion. The ESG/DEI Committee

demonstrates our and the Board’s ongoing commitment of

driving and fostering diversity in the workforce and in the

communities in which we operate. In partnership with the ESG/


5		Jefferies Financial Group Inc.

DEI Committee, we participated in a rigorous study to track

progress against our peers in representation data, initiatives, and

programs. Jefferies’ data representation is generally in line with

our peers.

We encourage you to review our Sustainability Report (located on

our website) for more detailed information regarding our human

capital programs and initiatives. Nothing on our website,

including the Sustainability Report or sections thereof, is deemed

incorporated by reference into this Report. In addition, for

discussion of the risks relating to our ability to attract, develop

and retain highly skilled and productive employees, refer to “Part

1. Item 1A. Risk Factors.”

Employee Benefits

Our benefits are designed to attract, support and retain

employees by providing employees and their spouses, partners

and families with health and wellness programs (medical, dental,

vision and behavioral), retirement wealth accumulation, paid time

off, income replacement (paid sick and disability leaves and life

insurance) and family-oriented benefits (parental leaves and child

care assistance). We also provide all our employees with benefits

to support inclusive fertility health and family-forming benefits.

We have continued to broaden our inclusive benefits offering by

adding menopause support as well. This year, we expanded our

primary caregiver leave time in the United States and provided

coaching to individuals going out and returning from primary

caregiver leave globally. We also endeavor to provide location

specific health club, transportation and employee discounts.

Giving Back to Community

The firm is committed to giving back to our communities. In

2024, we donated $3.8 million to over 200 organizations across a

number of Jefferies-supported charitable initiatives. Additionally,

through our Employee Resource Groups, employees have created

lasting partnerships by volunteering time to support several of

these charitable partners.

Competition

All aspects of our business are intensely competitive. We

compete primarily with large global bank holding companies that

engage in investment banking and capital markets activities as

one of their lines of business and that have greater capital and

resources than we do. We also compete against other broker-

dealers, asset managers and boutique firms. We believe the

principal factors driving our competitiveness include our ability to

provide differentiated insights to our clients that lead to better

business outcomes, to attract, retain and develop skilled

professionals and to deliver a competitive breadth of high-quality

service offerings; our vast global footprint; the depth and breadth

of our capabilities in Investment Banking and Capital Markets;

and our ability to maintain a flat, nimble and entrepreneurial

culture built on immediacy and client service.

Regulation

Regulation in the United States. The financial services industry in

which we operate is subject to extensive regulation. As a publicly

traded company and through our investment bank, investment

management and derivative businesses in the U.S., we are

subject to the jurisdiction of the Securities and Exchange

Commission (“SEC”). In the U.S., the SEC is the federal agency

responsible for the administration of federal securities laws, and

the Commodity Futures Trading Commission (“CFTC”) which is

the federal agency responsible for the administration of laws

relating to commodity interests (including futures, commodity

options and swaps). In addition, the Financial Industry Regulatory

Authority, Inc. (“FINRA”) and the National Futures Association

(“NFA”) are self-regulatory organizations (“SROs”) that are

actively involved in the regulation of our financial services

businesses (securities businesses in the case of FINRA and

commodities/futures businesses in the case of the NFA). Broker-

dealers that conduct securities activities involving municipal

securities are also subject to regulation by the Municipal

Securities Rulemaking Board (“MSRB”). In addition to federal

regulation, we are subject to state securities regulations in each

state and U.S. territory in which we conduct securities or

investment advisory activities and to regulation by other SROs

within the U.S. and the securities exchanges and execution

facilities of which we are a member. The SEC, FINRA, CFTC, NFA,

SROs and state securities regulators conduct periodic

examinations of broker-dealers, investment advisors, futures

commission merchants (“FCMs”), swap dealers, security-based

swap dealers (“SBS dealers”) and over the counter derivatives

dealer (“OTCDD”). The designated examining authority under the

U.S. Securities Exchange Act of 1934, as amended (the

“Exchange Act”) for Jefferies LLC’s activities as a broker-dealer is

FINRA, and the designated self-regulatory organization (“DSRO”)

under the U.S. Commodity Exchange Act for Jefferies LLC’s non-

clearing FCM activities is the NFA. As it pertains to Jefferies

Financial Services Inc. (“JFSI”), the designated examining

authority for its activities as an SEC registered SBS dealer and

OTCDD is the SEC, while the DSRO for its activities as a swap

dealer registered with the CFTC is the NFA. Financial services

businesses are also subject to regulation and examination by

state securities regulators and attorneys general in those states

in which they do business. In addition, broker-dealers, investment

advisors, FCMs, swap dealers, SBS dealers and OTCDD must also

comply with the rules and regulation of clearing houses,

exchanges, swap execution facilities and trading platforms of

which they are a member.

Broker-dealers are subject to SEC, FINRA, MSRB, SRO and state

securities regulations that cover all aspects of the securities

business, including sales and trading methods, trade practices

among broker-dealers, use and safekeeping of customers’ funds

and securities, capital structure and requirements, anti-money

laundering efforts, recordkeeping and the conduct of broker-

dealer personnel including officers and employees (although

state securities regulations are, in a number of cases, more

limited). Registered investment advisors are subject to, among

other requirements, SEC regulations concerning marketing,

transactions with affiliates, custody of client assets, disclosures

to clients, conflict of interest, insider trading and recordkeeping;

and investment advisors that are also registered as commodity

trading advisors or commodity pool operators are also subject to

regulation by the CFTC and the NFA. Additional legislation,

changes in rules promulgated by the SEC, FINRA, CFTC, NFA

other SROs of which the broker-dealer is a member, and state

securities regulators, or changes in the interpretation or

enforcement of existing laws or rules may directly affect the

operations and profitability of broker-dealers, investment

advisors, FCMs, commodity trading advisors, commodity pool

operators, swap dealers and SBS dealers. The SEC, CFTC, FINRA,

NFA, state securities regulators and state attorneys general may

conduct administrative proceedings or initiate civil litigation that

can result in adverse consequences for Jefferies LLC, JFSI, and

its affiliated entities, including affiliated investment advisors, as

well as its and their officers and employees (including, without

limitation, injunctions, censures, fines, suspensions, directives

that impact business operations (including proposed

expansions), membership expulsions, or revocations of licenses

and registrations).


November 2024 Form 10-K		6

The investment advisers responsible for the Jefferies’ investment

management businesses are all registered as investment

advisers with the SEC or rely upon the registration of an affiliated

adviser, and all are currently exempt from registration as

Commodity Pool Operators and Commodity Trading Advisors.

Registered investment advisers are subject to the requirements

of the Advisers Act and the regulations promulgated thereunder.

Such requirements relate to, among other things, fiduciary duties

to clients, maintaining an effective compliance program,

operational and marketing requirements, disclosure obligations,

conflicts of interest, fees and prohibitions on fraudulent

activities.

The investment activities are also subject to regulation under the

Securities Exchange Act of 1934, as amended, the Securities Act

of 1933, as amended, the Investment Company Act of 1940, as

amended (the “Investment Company Act”) and various other

statutes, as well as the laws of the fifty states and the rules of

various United States and non-United States securities

exchanges and self-regulatory organizations, including laws

governing trading on inside information, market manipulation and

a broad number of technical requirements (e.g., options and

futures position limits, execution requirements and reporting

obligations) and market regulation policies in the United States

and globally. Congress, regulators, tax authorities and others

continue to explore and implement regulations governing all

aspects of the financial services industry. Pursuant to systemic

risk reporting requirements adopted by the SEC, Jefferies’

affiliated registered investment advisers with private investment

fund clients are required to report certain information about their

investment funds to the SEC.

Regulatory Capital Requirements. Several of our regulated entities

are subject to financial capital requirements that are set by

applicable local regulations.

Jefferies LLC is a dually registered broker-dealer and FCM and is

required to maintain net capital in excess of the greater of the

SEC or CFTC minimum financial requirements. As a broker-

dealer, Jefferies LLC is subject to the SEC’s Uniform Net Capital

Rule 15c3-1 (the “Net Capital Rule”), which specifies the

minimum level of net capital a broker-dealer must maintain and

also requires that a significant part of a broker-dealer's assets be

kept in relatively liquid form. The SEC and various self-regulatory

organizations impose rules that require notification when net

capital falls below certain predefined criteria, limit the ratio of

subordinated debt to equity in the regulatory capital composition

of a broker-dealer and constrain the ability of a broker-dealer to

expand its business under certain circumstances. Jefferies LLC

has elected to compute its minimum net capital requirement in

accordance with the “Alternative Net Capital Requirement” as

permitted by the Net Capital Rule, which provides that a broker-

dealer shall not permit its net capital, as defined, to be less than

the greater of 2% of its aggregate debit balances (primarily

customer-related receivables) or $250,000 ($1.5 million for prime

brokers, as applicable to Jefferies LLC). Compliance with the Net

Capital Rule could limit Jefferies LLC’s operations, such as

underwriting and trading activities and financing customers’

prime brokerage or other margin activities, in each case, that

could require the use of significant amounts of capital, limit its

ability to engage in certain financing transactions, such as

repurchase agreements, and may also restrict its ability (i) to

make payments of dividends, withdrawals or similar distributions

or payments to a stockholder/parent or other affiliate, (ii) to make

a redemption or repurchase of shares of stock, or (iii) to make an

unsecured loan or advance to such shareholders or affiliates. As

a carrying/clearing broker-dealer, under FINRA Rule 4110, FINRA

could impose higher minimum net capital requirements than

required by the SEC and could restrict a broker-dealer from

expanding business or require the broker-dealer to reduce its

business activities. As a non-clearing FCM, Jefferies LLC is also

required to maintain minimum adjusted net capital of $1.0 million

under CFTC rules.

JFSI is dually registered with the SEC as an SBS dealer and

OTCDD and registered with the CFTC as a swap dealer. JFSI is

required to comply with the SEC and CFTC capital rules for SBS

dealers and swap dealers, respectively. Further, as an OTCDD,

JFSI is subject to compliance with the SEC’s net capital

requirements.

As an SEC registered OTCDD and security-based swap dealer,

JFSI is subject to rules regarding capital, segregation and margin

requirements. The CFTC and NFA have also adopted similar

swap dealer capital rules. Under the rules there are minimum

capital requirements for, among others, an entity that acts as a

dealer in SBS or swaps, of $100 million in tentative net capital or

the greater of $20 million or 2% (that the SEC could, in the future,

increase up to 4% or 8%) of a risk margin amount in net capital.

The risk margin amount for the SEC means the sum of (i) the

total initial margin required to be maintained by the SEC-

registered SBS dealer at each clearinghouse with respect to SBS

or swap transactions cleared for SBS or swap customers and (ii)

the total initial margin amount calculated by the SEC-registered

SBS dealer with respect to non-cleared SBS and swaps under the

SEC rules. The risk margin amount for the CFTC means the total

initial margin amount calculated by the CFTC-registered swap

dealer with respect to non-cleared SBS and swaps under the

CFTC rules.

Under the Exchange Act, state securities regulators are not

permitted to impose capital, margin, custody, financial

responsibility, making and keeping records, bonding, or financial

or operational reporting requirements on registered broker-

dealers that differ from, or are in addition to, the requirements in

those areas established under the Exchange Act, including the

rules and regulations promulgated thereunder.

For additional information refer to Item 1A. Risk Factors -

“Legislation and regulation may significantly affect our business.”

Jefferies Financial Group Inc. is not subject to any regulatory

capital rules.

Refer to Net Capital within Item 7. Management’s Discussion and

Analysis and Note 22, Regulatory Requirements in this Annual

Report on Form 10-K for additional discussion of net capital

calculations.

Regulation outside the United States. We are an active participant

in the international capital markets and provide investment

banking services internationally, primarily in Europe and the

Middle East and Asia-Pacific. Jefferies International Limited,

which is the principal operating subsidiary of Jefferies in the U.K.,

maintains regulatory capital aligned with the two key regulatory

pillars. Pillar 1 is its own funds requirement which represents the

highest of the permanent minimum capital requirement, fixed

overheads requirement and k-factor requirements set out in the

Investment Firms Prudential Regime (“IFPR”) under the Financial

Conduct Authority’s (“FCA”) MIFIDPRU sourcebook, while Pillar 2

pertains to the International Capital Adequacy and Risk

Assessment (“ICARA”) process whereby Jefferies International

Limited ensures that it maintains capital in excess of minimum

regulatory capital requirements under both normal and stressed

conditions. Our international subsidiaries are subject to extensive

regulations proposed, promulgated and enforced by, among


7		Jefferies Financial Group Inc.

other regulatory bodies, the European Commission and European

Supervisory Authorities (including the European Banking

Authority and European Securities and Market Authority), the U.K.

Financial Conduct Authority, the German Federal Financial

Supervisory Authority (“BaFin”), the Canadian Investment

Regulatory Organization, the Swiss Financial Market Supervisory

Authority (“FINMA”), the Dubai Financial Services Authority, the

Hong Kong Securities and Futures Commission, the Japan

Financial Services Agency, the Monetary Authority of Singapore,

the Australian Securities and Investments Commission and the

Securities and Exchange Board of India (“SEBI”). Every country in

which we do business imposes upon us laws, rules and

regulations similar to those in the U.S., including with respect to

some form of capital adequacy rules, customer protection rules,

data protection regulations, anti-money laundering and anti-

bribery rules, compliance with other applicable trading and

investment banking regulations and similar regulatory reform.

Item 1A. Risk Factors

Factors Affecting Our Business

The following factors describe some of the assumptions, risks,

uncertainties and other factors that could adversely affect our

business or that could necessitate unforeseen changes to the

ways we operate our businesses or could otherwise result in

changes that differ materially from our expectations. In addition

to the specific factors mentioned in this report, we may also be

affected by other factors that affect businesses generally, such

as global or regional changes in economic, business or political

conditions, acts of war, terrorism, pandemics, climate change,

and natural disasters.

Credit, Market and Liquidity Risks

Our business is subject to significant credit risk.

In the normal course of our businesses, we are involved in the

execution, settlement and financing of various customer and

principal securities and derivative transactions. These activities

are transacted on a cash, margin or delivery-versus-payment

basis and are subject to the risk of counterparty or customer

nonperformance. Even when transactions are collateralized by

the underlying security or other securities, we still face the risks

associated with changes in the market value of the collateral

through settlement date or during the time when margin is

extended and collateral has not been secured or the counterparty

defaults before collateral or margin can be adjusted. We may

also incur credit risk in our derivative transactions to the extent

such transactions result in uncollateralized credit exposure to our

counterparties.

We seek to control the risk associated with these transactions by

establishing and monitoring credit limits and by monitoring

collateral and transaction levels daily. We may require

counterparties to deposit additional collateral or return collateral

pledged. In certain circumstances, we may, under industry

regulations, purchase the underlying securities in the market and

seek reimbursement for any losses from the counterparty.

However, there can be no assurances that our risk controls will

be successful.

We are exposed to significant market risk and our principal

trading and investments expose us to risk of loss.

Market risk generally represents the risk that values of assets

and liabilities or revenues will be adversely affected by changes

in market conditions. Market risk is inherent in the financial

instruments associated with our operations and activities,

including trading account assets and liabilities, loans, securities,

short-term borrowings, corporate debt and derivatives. Market

conditions that change from time to time, thereby exposing us to

market risk, include fluctuations in interest rates, equity prices,

relative exchange rates, and price deterioration or changes in

value due to changes in market perception or actual credit quality

of an issuer.

In addition, disruptions in the liquidity or transparency of the

financial markets may result in our inability to sell, syndicate or

realize the value of security positions, thereby leading to

increased concentrations. The inability to reduce our positions in

specific securities may not only increase the market and credit

risks associated with such positions, but also increase capital

requirements, which could have an adverse effect on our

business, results of operations, financial condition and liquidity.

A considerable portion of our revenues is derived from trading in

which we act as principal. We may incur trading losses relating to

the purchase, sale or short sale of fixed income, high yield,

international, convertible and equity securities, loans, derivative

contracts and commodities for our own account. In any period,

we may experience losses on our inventory positions as a result

of the level and volatility of equity, fixed income and commodity

prices (including oil prices), lack of trading volume and illiquidity.

From time to time, we may engage in a large block trade in a

single security or maintain large position concentrations in a

single security, securities of a single issuer, securities of issuers

engaged in a specific industry or securities from issuers located

in a particular country or region. In general, because our inventory

is marked to market on a daily basis, any adverse price

movement in these securities could result in a reduction of our

revenues and profits. In addition, we may engage in hedging

transactions that if not successful, could result in losses.

Increased market volatility may also impact our revenues as

transaction activity in our investment banking and capital

markets sales and trading businesses can be negatively

impacted in a volatile market environment.

Refer to Management’s Discussion and Analysis of Financial

Condition and Results of Operations-Risk Management within

Part II, Item 7. of this Annual Report on Form 10-K for additional

discussion.

A credit-rating agency downgrade could significantly impact our

business.

The cost and availability of financing generally are impacted by

(among other things) our credit ratings. If any of our credit

ratings were downgraded, or if rating agencies indicate that a

downgrade may occur, our business, financial position and

results of operations could be adversely affected and

perceptions of our financial strength could be damaged, which

could adversely affect our client relationships. Additionally, we

intend to access the capital markets and issue debt securities

from time to time, and a decrease in our credit ratings or outlook

could adversely affect our liquidity and competitive position,

increase our borrowing costs, decrease demand for our debt

securities and increase the expense and difficulty of financing

our operations. In addition, in connection with certain over-the-

counter derivative contract arrangements and certain other

trading arrangements, we may be required to provide additional

collateral to counterparties, exchanges and clearing

organizations in the event of a credit rating downgrade. Such a

downgrade could also negatively impact the prices of our debt

securities. There can be no assurance that our credit ratings will

not be downgraded.


November 2024 Form 10-K		8

As a holding company, we are dependent for liquidity from

payments from our subsidiaries, many of which are subject to

restrictions.

As a holding company, we depend on dividends, distributions and

other payments from our subsidiaries to fund payments on our

obligations, including debt obligations. Several of our

subsidiaries, particularly our broker-dealer subsidiaries and swap

dealer subsidiary, are subject to regulations that limit or restrict

dividend payments or reduce the availability of the flow of funds

from those subsidiaries to us. In addition, our broker-dealer

subsidiaries and swap dealer subsidiary are subject to

restrictions on their ability to lend or transact with affiliates and

are required to maintain minimum regulatory capital

requirements. These regulations may hinder our ability to access

funds that we may need to make payments to fulfill obligations.

From time to time we may invest in securities that are illiquid or

subject to restrictions.

From time to time we may invest in securities that are subject to

restrictions which prohibit us from selling the securities for a

period of time. Such agreements may limit our ability to generate

liquidity quickly through the disposition of the underlying

investment while the agreement is effective.

Economic Environment Risks

We may incur losses as a result of unforeseen or catastrophic

events, including the emergence of a pandemic, cybersecurity

incidents and events, terrorist attacks, war, trade policies,

military conflict, climate-related incidents or other natural

disasters.

The occurrence of unforeseen or catastrophic events, including

the emergence of a pandemic, such as COVID-19, or other

widespread health emergency (or concerns over the possibility of

such an emergency), cybersecurity incidents and events, terrorist

attacks, war, trade policies, military conflict, extreme climate-

related incidents or events or other natural disasters, could

create economic and financial disruptions, and could lead to

operational difficulties (including travel limitations) that could

impair our ability to manage our businesses. For instance, the

spread of illnesses or pandemics has, and could in the future,

cause illness, quarantines, various shutdowns, reduction in

business activity and financial transactions, labor shortages,

supply chain interruptions and overall economic and financial

market instability. In addition, geopolitical and military conflict

and war between Russia and Ukraine and Hamas and Israel have

and will continue to result in instability and adversely affect the

global economy or specific markets, which could continue to

have an adverse impact or cause volatility in the financial

services industry generally or on our results of operations and

financial conditions. In addition, these geopolitical tensions can

cause an increase in volatility in commodity and energy prices,

creating supply chain issues, and causing instability in financial

markets. Sanctions imposed by the United States and other

countries in response to such conflict could further adversely

impact the financial markets and the global economy, and any

economic countermeasures by the affected countries or others,

could exacerbate market and economic instability. While we do

not have any operations in Russia or any clients with significant

Russian operations and we have minimal market risk related to

securities of companies either domiciled or operating in Russia,

the specific consequences of the conflict in Ukraine on our

business is difficult to predict at this time. Likewise, our

investments and assets in our growing Israeli business could be

negatively affected by consequences from the geopolitical and

military conflict in the region. In addition to inflationary pressures

affecting our operations, we may also experience an increase in

cyberattacks against us and our third-party service providers

from Russia, Hamas or their allies.

Climate change concerns and incidents could disrupt our

businesses, adversely affect the profitability of certain of our

investments, adversely affect client activity levels, adversely

affect the creditworthiness of our counterparties and damage our

reputation.

Climate change may cause extreme weather events that disrupt

operations at one or more of our or our customer’s or client’s

locations, which may negatively affect our ability to service and

interact with our clients, and also may adversely affect the value

of certain of our investments, including our real estate

investments. Climate change, as well as uncertainties related to

the transition to a lower carbon dependent economy, may also

have a negative impact on the financial condition of our clients,

which may decrease revenues from those clients and increase

the credit risk associated with loans and other credit exposures

to those clients. Additionally, our reputation and client

relationships may be damaged as a result of our involvement, or

our clients’ involvement, in certain industries or projects

associated with causing or exacerbating climate change, as well

as any decisions we make to continue to conduct or change our

activities in response to considerations relating to climate

change.

New regulations or guidance relating to climate change and the

transition to a lower carbon dependent economy, as well as the

perspectives of shareholders, employees and other stakeholders

regarding climate change, may affect whether and on what terms

and conditions we engage in certain activities or offer certain

products, as well as impact our business reputation and efforts

to recruit and retain employees and customers.

Abrupt changes in market and general economic conditions have

in the past adversely affected, and may in the future adversely

affect, our business and profitability and cause volatility in our

results of operations.

Economic and market conditions have had, and will continue to

have, a direct and material impact on our results of operations

and financial condition because performance in the financial

services industry is heavily influenced by the overall strength of

general economic conditions and financial market activity.

Our investment banking revenue, in the form of advisory services

and underwriting, is directly related to general economic

conditions and corresponding financial market activity. When the

outlook for such economic conditions is uncertain or negative,

financial market activity generally tends to decrease, which

reduces our investment banking revenues. Reduced expectations

of U.S. economic growth or a decline in the global economic

outlook could cause financial market activity to decrease and

negatively affect our investment banking revenues.

A sustained and continuing market downturn could lead to or

exacerbate declines in the number of securities transactions

executed for clients and, therefore, to a decline in the revenues

we receive from commissions and spreads. Correspondingly, a

reduction of prices of the securities we hold in inventory or as

investments would lead to reduced revenues.

Revenues from our asset management businesses have been

and may continue to be negatively impacted by declining

securities prices, as well as widely fluctuating securities prices.

Because our asset management businesses hold long and short

positions in equity and debt securities, changes in the prices of

these securities, as well as any decrease in the liquidity of these


9		Jefferies Financial Group Inc.

securities, may materially and adversely affect our revenues from

asset management.

Similarly, our other investments businesses may suffer from the

above-mentioned impacts of fluctuations in economic and

market conditions, including reductions in business activity and

financial transactions, labor shortages, supply chain interruptions

and overall economic and financial market instability. In addition,

other factors, most of which are outside of our control, can affect

our businesses, including the state of the real estate market, the

state of the Italian telecommunications market, and the state of

international market and economic conditions which impact

trading volume and currency volatility, and changes in regulatory

requirements.

In addition, global economic conditions and global financial

markets remain vulnerable to the potential risks posed by certain

events, which could include, among other things, the level and

volatility of interest rates, the availability and market conditions

of financing, economic growth or its sustainability, unforeseen

changes to gross domestic product, inflation, energy prices,

fluctuations or other changes in both debt and equity capital

markets and currencies, political and financial uncertainty in the

United States and the European Union, ongoing concern about

Asia’s economies, global supply disruptions, complications

involving terrorism and armed conflicts around the world

(including the conflict between Russia and Ukraine, and Hamas

and Israel, or other challenges to global trade or travel, such as

those that occur due to a pandemic). More generally, because

our business is closely correlated to the general economic

outlook, a significant deterioration in that outlook or realization of

certain events would likely have an immediate and significant

negative impact on our business and overall results of

operations.

Changing financial, economic and political conditions could result

in decreased revenues, losses or other adverse consequences.

Global or regional changes in the financial markets or economic

and political conditions could adversely affect our business in

many ways, including the following:

•A market downturn, potential recession and high inflation, as

well as declines in consumer confidence and an increase in

unemployment rates, could lead to a decline in the volume of

transactions executed for customers and, therefore, to a

decline in the revenues we receive from commissions and

spreads. Any such economic downturn, volatile business

environment, hostile third-party action or continued

unpredictable and unstable market conditions could adversely

affect our general business strategies;

•Unfavorable conditions or changes in general political,

economic or market conditions could reduce the number and

size of transactions in which we provide underwriting, financial

advisory and other services. Our investment banking revenues,

in the form of financial advisory, underwriting or placement

fees, are directly related to the number and size of the

transactions in which we participate and could therefore be

adversely affected by unfavorable financial, economic or

political conditions. In particular, the increasing trend toward

sovereign protectionism and de-globalization has resulted or

could result in decreases in free trade, erosion of traditional

international coalitions, the imposition of sanctions and tariffs,

governmental closures and no-confidence votes, domestic and

international strife, and general market upheaval in response to

such results, all of which could negatively impact our business;

•Adverse changes in the securities markets could lead to a

reduction in revenues from asset management fees and losses

on our own capital invested in managed funds. Even in the

absence of a market downturn, below-market investment

performance by our funds and portfolio managers could

reduce asset management revenues and assets under

management and result in reputational damage that might

make it more difficult to attract new investors;

•Adverse changes in the financial markets could lead to

regulatory restrictions that may limit or halt certain of our

business activities;

•Limitations on the availability of credit can affect our ability to

borrow on a secured or unsecured basis, which may adversely

affect our liquidity and results of operations. Global market and

economic conditions have been particularly disrupted and

volatile in the last several years and may be in the future. Our

cost and availability of funding could be affected by illiquid

credit markets and wider credit spreads;

•New or increased taxes on compensation payments such as

bonuses may adversely affect our profits;

•Should one of our clients or competitors fail, our business

prospects and revenue could be negatively impacted due to

negative market sentiment causing clients to cease doing

business with us and our lenders to cease loaning us money,

which could adversely affect our business, funding and

liquidity;

•Unfavorable economic conditions could have an adverse effect

on the demand for new loans and the servicing of loans

originated by third-parties, which would have an adverse

impact on the operations and profitability of some of our

financial services businesses.

Operational Risks

We may incur losses if our risk management is not effective.

We seek to monitor and control our risk exposure. Our risk

management processes and procedures are designed to limit our

exposure to acceptable levels as we conduct our business. We

apply a comprehensive framework of limits on a variety of key

metrics to constrain the risk profile of our business activities.

These limits reflect our risk tolerances for business activity. Our

framework includes inventory position and exposure limits on a

gross and net basis, scenario analysis and stress tests, Value-at-

Risk, sensitivities, exposure concentrations, aged inventory, the

amount of Level 3 assets, counterparty exposure, leverage, cash

capital and performance analysis. Refer to Management’s

Discussion and Analysis of Financial Condition and Results of

Operations - Risk Management within Part II. Item 7. of this

Annual Report on Form 10-K for additional discussion. While we

employ various risk monitoring and risk mitigation techniques,

those techniques and the judgments that accompany their

application, including risk tolerance determinations, cannot

anticipate every economic and financial outcome or the specifics

and timing of such outcomes. As a result, we may incur losses

notwithstanding our risk management processes and

procedures.

The ability to attract, develop and retain highly skilled and

productive employees is critical to the success of our business.

Our ability to develop and retain our clients depends on the

reputation, judgment, business generation capabilities and skills

of our professionals. To compete effectively, we must attract,

retain and motivate qualified professionals, including successful

investment bankers, sales and trading professionals, research


November 2024 Form 10-K		10

professionals, portfolio managers and other revenue producing

or specialized personnel, in addition to qualified, successful

personnel in functional, non-revenue producing roles.

Competitive pressures we experience with respect to employees

could have an adverse effect on our business, results of

operations, financial condition and liquidity.

Turnover in the financial services industry is high. The cost of

retaining skilled professionals in the financial services industry

has escalated considerably. Financial industry employers are

increasingly offering guaranteed contracts, upfront payments and

increased compensation. These can be important factors in a

current employee’s decision to leave us as well as in a

prospective employee’s decision to join us. As competition for

skilled professionals in the industry remains intense, we may

have to devote significant resources to attracting and retaining

qualified personnel.

If we were to lose the services of certain of our professionals, we

may not be able to retain valuable relationships and some of our

clients could choose to use the services of a competitor instead

of our services. If we are unable to retain our professionals or

recruit additional professionals, our reputation, business, results

of operations and financial condition will be adversely affected.

Further, new business initiatives and efforts to expand existing

businesses frequently require that we incur compensation and

benefits expense before generating additional revenues.

Moreover, companies in our industry whose employees accept

positions with competitors often claim that those competitors

have engaged in unfair hiring practices. We may be subject to

such claims in the future as we seek to hire qualified personnel

who have worked for our competitors. Some of these claims may

result in material litigation. We could incur substantial costs in

defending against these claims, regardless of their merits. Such

claims could also discourage potential employees who work for

our competitors from joining us.

We face increasing competition in the financial services industry.

We operate in an intensely competitive with other global bank

holding companies that engage in investment banking and

capital markets activities as one of their lines of business and

that have greater capital and resources than we do. We also

compete against other broker-dealers, asset managers and

boutique firms on both a global and regional basis. There is also

growing pressure to provide services at lower fees to appeal to

clients, which may impact our ability to effectively compete.

Operational risks may disrupt our business, result in regulatory

action against us or limit our growth.

Our businesses are highly dependent on our ability to process, on

a daily basis, a large number of transactions across numerous

and diverse markets in many currencies, and the transactions we

process have become increasingly complex. If any of our

financial, accounting or other data processing systems do not

operate properly, or are disabled, or if there are other

shortcomings or failures in our internal processes, people or

systems, we could suffer an impairment to our liquidity, financial

loss, a disruption of our businesses, liability to clients, regulatory

intervention or reputational damage. These systems may fail to

operate properly or become disabled as a result of events that

are wholly or partially beyond our control, including a disruption

of electrical or communications services or our inability to

occupy one or more of our buildings. The inability of our systems

to accommodate an increasing volume and complexity of

transactions could also constrain our ability to expand our

businesses.

Certain of our financial and other data processing systems rely

on access to and the functionality of operating systems

maintained by third-parties. If the accounting, trading or other

data processing systems on which we are dependent are unable

to meet increasingly demanding standards for processing and

security or, if they fail or have other significant shortcomings, we

could be adversely affected. Such consequences may include our

inability to effect transactions and manage our exposure to risk.

In addition, despite the contingency plans we have in place, our

ability to conduct business may be adversely impacted by a

disruption in the infrastructure that supports our businesses and

the communities in which they are located. This may include a

disruption involving electrical, communications, transportation or

other services used by us or third-parties with which we conduct

business.

Any cyber attack, cybersecurity incident, or other information

security breach of, or vulnerability in, our technology systems, or

those of our clients, partners, counterparties, or other third-party

service providers we rely on, could have operational impacts,

subject us to significant liability and harm our reputation.

Our operations rely heavily on the secure processing, storage and

transmission of financial, personal and other information in our

computer systems and networks. In recent years, there have

been several highly publicized incidents involving financial

services companies reporting the unauthorized disclosure of

client or other confidential information, as well as cyber attacks

involving theft, dissemination and destruction of corporate

information or other assets, which in some cases occurred as a

result of failure to follow procedures by employees or contractors

or as a result of actions by third-parties. Cyber attacks can

originate from a variety of sources, including third-parties

affiliated with foreign governments, organized crime or terrorist

organizations, and malicious individuals both outside and inside

a targeted company, including through use of relatively new

artificial intelligence tools or methods. Retaliatory acts by Russia,

Hamas or their allies in response to economic sanctions or other

measures taken by the global community arising from the Russia-

Ukraine and Hamas-Israel conflicts could result in an increased

number and/or severity of cyber attacks. Malicious actors may

also attempt to compromise or induce our employees, clients or

other users of our systems to disclose sensitive information or

provide access to our data, and these types of risks may be

difficult to detect or prevent.

Like other financial services firms, we and our third-party service

providers have been the target of cyber attacks. Although we and

our service providers regularly defend against, respond to and

mitigate the risks of cyberattacks, cybersecurity incidents among

financial services firms and industry generally are on the rise. We

are not aware of any material losses we have incurred relating to

cyber attacks or other information security breaches. The

techniques and malware used in these cyber attacks and

cybersecurity incidents are increasingly sophisticated, change

frequently and are often not recognized until launched because

they are novel. Although we monitor the changing cybersecurity

risk environment and seek to maintain reasonable security

measures, including a suite of authentication and layered

information security controls, no security measures are infallible,

and we cannot guarantee that our safeguards will always work or

that they will detect, mitigate or remediate these risks in a timely

manner. Despite our implementation of reasonable security

measures and endeavoring to modify them as circumstances

warrant, our computer systems, software and networks may be

vulnerable to spam attacks, unauthorized access, distributed

denial of service attacks, ransomware, computer viruses and


11		Jefferies Financial Group Inc.

other malicious code, as well as human error, natural disaster,

power loss, and other events that could damage our reputation,

impact the security and stability of our operations, and expose us

to class action lawsuits and regulatory investigation, action, and

penalties, and significant liability.

We also rely on numerous third-party service providers to

conduct other aspects of our business operations and we face

similar risks relating to them. While we evaluate the information

security programs and defenses of third-party vendors, we

cannot be certain that our reviews and oversight will identify all

potential information security weaknesses or that our vendors’

information security protocols are or will be sufficient to

withstand or adequately respond to a cyber attack, cybersecurity

incident or other information security breach. In addition, in order

to access our products and services, or trade with us, our

customers and counterparties may use networks, computers and

other devices that are beyond our security control systems and

processes.

Notwithstanding the precautions we take, if a cyber attack,

cybersecurity incident, or other information security breach were

to occur, this could jeopardize the information we confidentially

maintain, or otherwise cause interruptions in our operations or

those of our clients and counterparties, exposing us to liability.

As attempted attacks continue to evolve in scope and

sophistication, we may be required to expend substantial

additional resources to modify or enhance our reasonable

security measures, to investigate and remediate vulnerabilities or

other exposures or to communicate about cyber attacks,

cybersecurity incidents or other information security breaches to

our customers, partners, third-party service providers and

counterparties. Though we have insurance against some cyber

risks and attacks, we may be subject to litigation and financial

losses that exceed our insurance policy limits or are not covered

under any of our current insurance policies. A technological

breakdown could also interfere with our ability to comply with

financial reporting and other regulatory requirements, exposing

us to potential disciplinary action by regulators. Successful cyber

attacks, cybersecurity incidents or other information security

breaches at other large financial institutions or other market

participants, whether or not we are affected, could lead to a

general loss of customer confidence in financial institutions that

could negatively affect us, including harming the market

perception of the effectiveness of our security measures or the

financial system in general, which could result in a loss of

business.

Further, in light of the high volume of transactions we process,

the large number of our clients, partners and counterparties, and

the increasing sophistication of malicious actors that may

employ increasingly sophisticated methods such as new artificial

intelligence tools, a cyber attack, cybersecurity incident, or other

information security breach could occur and persist for an

extended period of time without detection. We expect that any

investigation of a cyber attack, cybersecurity incident, or other

information security breach would take substantial amounts of

time and resources, and that there may be extensive delays

before we obtain full and reliable information. During such time

we would not necessarily know the extent of the harm caused by

the cyber attack, cybersecurity incident, or other information

security breach or how best to remediate it, and certain errors or

actions could be repeated or compounded before they are

discovered and remediated. All of these factors could further

increase the costs and consequences of such a cyber attack or

cybersecurity incident. In providing services to clients, we

manage, utilize and store sensitive or confidential client or

employee data, including personal data. As a result, we are

subject to numerous laws and regulations designed to protect

this information, such as U.S. and non-U.S. federal and state laws

governing privacy and cybersecurity. If any person, including any

of our associates, negligently disregards or intentionally

breaches our established controls with respect to client or

employee data, or otherwise mismanages or misappropriates

such data, we could be subject to significant monetary damages,

regulatory enforcement actions, fines and/or criminal

prosecution. In addition, unauthorized disclosure of sensitive or

confidential client or employee data, whether through system

compromise or failure, employee negligence, fraud or

misappropriation, could damage our reputation and cause us to

lose clients and related revenue. Depending on the

circumstances giving rise to the information security breach, this

liability may not be subject to a contractual limit or an exclusion

of consequential or indirect damages.

Damage to our reputation could damage our business.

Maintaining our reputation is critical to our attracting and

maintaining customers, investors and employees. If we fail to

deal with, or appear to fail to deal with, various issues that may

give rise to reputational risk, we could significantly harm our

business prospects. These issues include, but are not limited to,

any of the risks discussed in this Item 1A, appropriately dealing

with potential conflicts of interest, legal and regulatory

requirements, ethical issues, money-laundering, cybersecurity

and privacy, record keeping, sales and trading practices, failure to

sell securities we have underwritten at the anticipated price

levels, and the proper identification of the legal, reputational,

credit, liquidity and market risks inherent in our products. A

failure to deliver appropriate standards of service and quality, or a

failure or perceived failure to treat customers and clients fairly,

can result in customer dissatisfaction, litigation and heightened

regulatory scrutiny, all of which can lead to lost revenue, higher

operating costs and harm to our reputation. Further, negative

publicity regarding us, whether or not true, may also result in

harm to our prospects. Our operations in the past have been

impacted as some clients either ceased doing business or

temporarily slowed down the level of business they do, thereby

decreasing our revenue. There is no assurance that we will be

able to successfully reverse the negative impact of allegations

and rumors in the future and our potential failure to do so could

have a material adverse effect on our business, financial

condition and liquidity.

Employee misconduct or fraud could harm us by impairing our

ability to attract and retain clients and subject us to significant

legal liability and reputational harm.

There is a risk that our employees could engage in fraud or other

misconduct that adversely affects our business. For example, we

are subject to a number of obligations and standards arising

from our asset management business and our responsibility over

the assets managed by this business. In addition, our financial

advisors may act in a fiduciary capacity, providing financial

planning, investment advice, and discretionary asset

management. Misconduct or fraud by employees, advisors, or

other third-party service providers could cause significant losses.

In addition, our business often requires that we deal with

confidential matters of great significance to our clients. If our

employees were to improperly use or disclose confidential

information provided by our clients, we could be subject to

regulatory sanctions and suffer serious harm to our reputation,

financial position, current client relationships and ability to attract

future clients. Employee misconduct or fraud could include,

among other things, binding us to unauthorized transactions that

present unacceptable risks, engaging in other unauthorized


November 2024 Form 10-K		12

activities or concealing unsuccessful investments. The violation

of these obligations and standards by any of our employees

would adversely affect our clients and us. It is not always

possible to deter employee misconduct, and the precautions we

take to detect and prevent this activity may not be effective

against certain misconduct, including conduct which is difficult

to detect. The occurrence of significant employee misconduct

could have a material adverse financial effect or cause us

significant reputational harm and/or legal and regulatory liability,

which in turn could seriously harm our business and our

prospects.

We may not be able to insure certain risks economically.

We cannot be certain that we will be able to insure all risks that

we desire to insure economically or that all of our insurers or

reinsurers will be financially viable if we make a claim. If an

uninsured loss or a loss in excess of insured limits should occur,

or if we are required to pay a deductible for an insured loss,

results of operations could be adversely affected.

Future acquisitions and dispositions of our businesses and

investments are possible, changing the components of our assets

and liabilities, and if unsuccessful or unfavorable, could reduce

the value of our securities.

Any future acquisitions or dispositions may result in significant

changes in the composition of our assets and liabilities, as well

as our business mix and prospects. Consequently, our financial

condition, results of operations and the trading price of our

securities may be affected by factors different from those

affecting our financial condition, results of operations and trading

price at the present time.

Our investment in Jefferies Finance may not prove to be

successful and may adversely affect our results of operations or

financial condition.

Many factors, most of which are outside of our control, can affect

Jefferies Finance’s business, including adverse investment

banking and capital market conditions leading to a decline of

syndicate loans, inability of borrowers to repay commitments,

adverse changes to a borrower’s credit worthiness, and other

factors that directly and indirectly effect the results of operations,

and consequently may adversely affect our results of operations

or financial condition.

Our investment in Berkadia may not prove to be successful and

may adversely affect our results of operations or financial

condition.

Many factors, most of which are outside of our control, can affect

Berkadia’s business, including loan losses in excess of reserves,

a change in the relationships with U.S. Government-Sponsored

Enterprises or federal agencies, a significant loss of customers,

and other factors that directly and indirectly effect the results of

operations, including the sales and profitability of Berkadia, and

consequently may adversely affect our results of operations or

financial condition.

If Berkadia suffered significant losses and was unable to repay its

commercial paper borrowings, we would be exposed to loss

pursuant to a reimbursement obligation to Berkshire Hathaway.

Berkadia obtains funds generated by commercial paper sales of

an affiliate of Berkadia. All of the proceeds from the commercial

paper sales are used by Berkadia to fund new mortgage loans,

servicer advances, investments and other working capital

requirements. Repayment of the commercial paper is supported

by a $1.5 billion surety policy issued by a Berkshire Hathaway

insurance subsidiary and a Berkshire Hathaway corporate

guaranty, and we have agreed to reimburse Berkshire Hathaway

for one-half of any losses incurred thereunder. If Berkadia suffers

significant losses and is unable to repay its commercial paper

borrowings, we would suffer losses to the extent of our

reimbursement obligation to Berkshire Hathaway.

Legal, Legislation and Regulation Risks

Legislation and regulation may significantly affect our business.

The Dodd-Frank Wall Street Reform and Consumer Protection Act

(the “Dodd-Frank Act”) and the rules and regulations adopted by

the CFTC and the SEC introduced a comprehensive regulatory

regime for swaps and SBS and parties that deal in such

derivatives. One of our subsidiaries is registered as a swap dealer

with the CFTC and is a member of the NFA, is registered as a

security-based swap dealer with the SEC and is registered with

the SEC as an OTC Derivatives Dealer. We have incurred

significant compliance and operational costs as a result of the

swaps and SBS rules adopted by the CFTC and SEC pursuant to

the Dodd-Frank Act, and we expect that the complex regulatory

framework will continue to require significant monitoring and

compliance expenditures. Negative effects could result from an

expansive extraterritorial application of the Dodd-Frank Act and/

or insufficient international coordination with respect to adoption

of rules for derivatives and other financial reforms in other

jurisdictions.

Similar types of swap regulation have been proposed or adopted

in jurisdictions outside the U.S., including in the EU, the U.K. and

Japan. For example, the EU and the U.K. have established

regulatory requirements relating to portfolio reconciliation and

reporting, clearing certain OTC derivatives and margining for

uncleared derivatives activities under the European Market

Infrastructure Regulation (“EMIR”). Further enhancements (driven

by regulation) have been required in 2024 with respect to EMIR

OTC derivative transaction reporting, and affect our European

entities.

The Markets in Financial Instruments Regulation and a revision of

the Market in Financial Instruments Directive in 2018 (collectively

referred to as “MiFID II”) imposes certain restrictions as to the

trading of shares and derivatives including market structure-

related, reporting, investor protection-related and organizational

requirements, requirements on pre- and post-trade transparency,

requirements to use certain venues when trading financial

instruments (which includes shares and certain derivative

instruments), requirements affecting the way investment

managers can obtain research, powers of regulators to impose

position limits and provisions on regulatory sanctions. The

European regulators continue to refine aspects of MiFID with

these changes now being rolled out separately in both the UK and

Europe.

New prudential regimes for investment firms have been

implemented in both the EU and the UK for MiFID authorized

investment firms. The Investment Firms Regulation (IFR) and the

Investment Firms Directive (IFD), applicable in the EU, and the

MIFIDPRU regime, applicable in the UK, while applying a more

appropriate capital treatment for investments firms such as the

UK entity, Jefferies International Limited, and, its EU subsidiary,

Jefferies GmbH, include a requirement that a certain amount of

variable remuneration for material risk takers be paid in non-cash

instruments and have a deferral element. Consequently, we have

adapted our remuneration structures for those employees

identified as material risk takers.


13		Jefferies Financial Group Inc.

A key focus of the European regulators over the last couple of

years has been emerging regulation with regards to Operational

Resilience, with regulators expecting investment firms like

Jefferies to be able to assess (on an ongoing basis) their

resilience (measured by impact to Jefferies’ clients and market)

on identified critical business services. This has brought our

management of third party risk, business continuity and the

mitigation of cyber risk more firmly into focus with the regulators.

Significant new legislation and regulation affecting the financial

services industry is regularly proposed and sometimes adopted.

These legislative and regulatory initiatives affect not only us, but

also our competitors and certain of our clients. These changes

could have an effect on our revenue and profitability, limit our

ability to pursue certain business opportunities, impact the value

of assets that we hold, require us to change certain business

practices, impose additional costs on us and otherwise adversely

affect our business. Accordingly, we cannot provide assurance

that legislation and regulation will not eventually have an adverse

effect on our business, results of operations, cash flows and

financial condition. In the U.S., such initiatives frequently arise in

the aftermath of elections that change the party of the president

or the majority party in the House and/or Senate.

Increasing regulatory focus on evolving privacy and security

issues and expanding laws could impact our businesses and

investments and expose us to increased liability.

The EU General Data Protection Regulation (the “EU GDPR” or

“GDPR”) applies in all EU Member States and also applies to

entities established outside of the EU where such entity

processes personal data in relation to: (i) the offering of goods or

services to data subjects in the EEA; or (ii) monitoring the

behavior of data subjects as far as that behavior takes place in

the EEA. The UK has implemented GDPR as part of its national

law (the “UK GDPR”). The UK GDPR exists alongside the UK Data

Protection Act 2018 and its requirements are largely aligned with

those under the EU GDPR.

The EU GDPR and UK GDPR impose a number of obligations on

organizations to which they apply, including, without limitation:

accountability and transparency requirements; compliance with

the data protection rights of data subjects; and under

circumstances, the prompt reporting of certain personal data

breaches to both the relevant data supervisory authority and

impacted individuals.

The EU GDPR and UK GDPR also include restrictions on the

transfer of personal data from the EEA to jurisdictions that are

not recognized as having an adequate level of protection with

regards to data protection laws.

The EU GDPR imposes significant fines for serious non-

compliance of up to the higher of 4% of an organization’s annual

worldwide turnover or €20 million (or approximately £17.5 million

under the UK GDPR). Data subjects also have a right to receive

compensation as a result of infringement of the EU GDPR and/or

UK GDPR for financial or non-financial losses.

Other privacy laws are in effect in the Americas, Europe and the

Middle East and Asia-Pacific regions, many of which involve

heightened compliance obligations similar to those under EU

GDPR and UK GDPR. The privacy and cybersecurity legislative

and regulatory landscape is evolving rapidly, and numerous

proposals regarding privacy and cybersecurity are pending before

U.S. and non-U.S. legislative and regulatory bodies. The adopted

form of such developing legislation and regulation will determine

the level of any resources which we will need to invest to ensure

compliance. In the event of non-compliance with privacy laws

and regulations, we could face significant administrative and

monetary sanctions as well as reputational damage which may

have a material adverse effect on our operations, financial

condition and prospects.

Extensive regulation of our business limits our activities, and, if

we violate these regulations, we may be subject to significant

penalties.

We are subject to extensive laws, rules and regulations in the

countries in which we operate. Firms that engage in providing

financial services must comply with the laws, rules and

regulations imposed by national and state governments and

regulatory and self-regulatory bodies with jurisdiction over such

activities. Such laws, rules and regulations cover many aspects

of providing financial services.

Our regulators supervise our business activities to monitor

compliance with applicable laws, rules and regulations. In

addition, if there are instances in which our regulators question

our compliance with laws, rules, or regulations, they may

investigate the facts and circumstances to determine whether we

have complied. At any moment in time, we may be subject to one

or more such investigations or similar reviews. At this time, all

such investigations and similar reviews are insignificant in scope

and immaterial to us. However, there can be no assurance that, in

the future, the operations of our businesses will not violate such

laws, rules, or regulations, or that such investigations and similar

reviews will not result in significant or material adverse regulatory

requirements, regulatory enforcement actions, fines or other

adverse impact to the operation of our business.

Additionally, violations of laws, rules and regulations could

subject us to one or more of the following events: civil and

criminal liability; sanctions, which could include the revocation of

our subsidiaries’ registrations as investment advisors or broker-

dealers; the revocation of the licenses of our financial advisors;

censures; fines; or a temporary suspension or permanent bar

from conducting business. The occurrence of any of these events

could have a material adverse effect on our business, financial

condition and prospects.

Certain of our subsidiaries are subject to regulatory financial

capital holding requirements that could impact various capital

allocation decisions or limit the operations of our broker-dealers.

In particular, compliance with the financial capital holding

requirement may restrict our broker-dealers’ ability to engage in

capital-intensive activities such as underwriting and trading, and

may also limit their ability to make loans, advances, dividends

and other payments and may restrict our swap dealer’s ability to

execute certain derivative transactions.

Additional legislation, changes in rules, changes in the

interpretation or enforcement of existing laws and rules, conflicts

and inconsistencies among rules and regulations, or the entering

into businesses that subject us to new rules and regulations may

directly affect our business, results of operations and financial

condition. We continue to monitor the impact of new U.S. and

international regulation on our businesses.

Legal liability may harm our business.

Many aspects of our business involve substantial risks of liability,

and in the normal course of business, we have been named as a

defendant or codefendant in lawsuits involving primarily claims

for damages. The risks associated with potential legal liabilities

often may be difficult to assess or quantify and their existence

and magnitude often remain unknown for substantial periods of

time. The expansion of our business, including increases in the

number and size of investment banking transactions and our


November 2024 Form 10-K		14

expansion into new areas impose greater risks of liability.

Substantial legal liability could have a material adverse financial

effect or cause us significant reputational harm, which in turn

could seriously harm our business and our prospects.

A change in tax laws in key jurisdictions could materially increase

our tax expense.

We are subject to tax in the U.S. and numerous international

jurisdictions. Changes to income tax laws and regulations in any

of the jurisdictions in which we operate, or in the interpretation of

such laws, or the introduction of new taxes, could significantly

increase our effective tax rate and ultimately reduce our cash

flow from operating activities and otherwise have an adverse

effect on our financial condition or results of operations.

If our tax filing positions were to be challenged by federal, state

and local, or foreign tax jurisdictions, we may not be wholly

successful in defending our tax filing positions.

We record reserves for unrecognized tax benefits based on our

assessment of the probability of successfully sustaining tax filing

positions. Management exercises significant judgment when

assessing the probability of successfully sustaining tax filing

positions, and in determining whether a contingent tax liability

should be recorded and, if so, estimating the amount. If our tax

filing positions are successfully challenged, payments could be

required that are in excess of reserved amounts or we may be

required to reduce the carrying amount of our net deferred tax

asset, either of which result could be significant to our financial

condition or results of operations.

Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity

Cybersecurity Risk Management and Strategy

Our Chief Information Security Officer (“CISO”) and the Global

Information Security team (“GIS”) oversee our cybersecurity

program and exercise overall responsibility for the strategic

vision, design, development and implementation of, and

adherence to, the program’s protocols. The comprehensive

program includes policies and procedures designed to protect

our systems, operations and the data entrusted to it from

anticipated threats or hazards. The program applies seven layers

of controls: governance, identification, protection, detection,

response, recovery and third-party vendor management. The

CISO reviews the cybersecurity framework annually as well as on

an event-driven basis, as necessary, and reviews the scope of

cybersecurity measures periodically, including to accommodate

changes in business practices that may implicate security-related

issues.

Protective measures, where appropriate, include, but are not

limited to, physical and digital access controls, software security

and patch management, identity verification, mobile device

management, data loss prevention solutions, employee

cybersecurity awareness communications and best practices

training programs, security baselines and tools to detect and

report anomalous activity, service provider risk assessments,

network monitoring, hardware and software, and data erasure

and media disposal. Measures, policies and standards are

aligned with industry-leading frameworks, such as those

promulgated by the International Organization for

Standardization and the National Institute of Standards and

Technology (“NIST”).

We test our cybersecurity defenses regularly through automated

vulnerability scanning to identify and remediate critical

vulnerabilities. In addition, an independent vendor conducts

annual penetration tests to validate our external security posture.

For certain businesses, we also conduct cyber incident tabletop

exercises involving hypothetical cybersecurity incidents to test

our cyber incident response processes. Tabletop exercises are

conducted by the Information Technology Risk team in

collaboration with outside service providers, as appropriate, and

members of senior management and Legal and Compliance.

Learnings from these tabletop exercises and any events that we

experience are reviewed, discussed, and incorporated into our

cybersecurity risk management processes, as appropriate.

In addition to our internal exercises to test aspects of our

cybersecurity program, we annually engage an independent third

party to assess information system risks and the maturity of our

cyber security program. The independent third party assesses the

cybersecurity program against the Cyber Risk Institute Cyber

Profile, a financial sector-focused framework based on the NIST

Cybersecurity Framework, the results of which are reported to the

Board of Directors and inform our program.

We have a comprehensive cybersecurity incident response and

communication plan (the “IRP”), managed by the Security

Operations Group, which is designed to inform appropriate risk

management and business managers of non-routine suspected

or confirmed information security or cybersecurity events based

on the expected risk an event presents. A team composed of

individuals from several internal technical and managerial

functions may be formed to investigate and remediate such an

event and determine the extent of external advisor support

required, including from external counsel, forensic investigators

and law enforcement agencies. The IRP is reviewed at least

annually.

Cybersecurity is assessed by Information Technology Risk and

approved by the Chief Information Officer (“CIO”) as a component

of our annual, enterprise-wide Risk Control Self Assessment

(“RCSA”) managed by the Operational Risk Group. The RCSA

process is independently verified by the Internal Audit

Department. Additionally, our cybersecurity risk management

process includes reviewing risks discerned from time to time

from both internal events and from external events, alerts and

reports received from a broad variety of sources. Reports from

external sources are also reviewed to formulate risk mitigation

and remediation strategies. The CISO periodically discusses and

reviews cybersecurity risks and related mitigants with the CIO,

the Head of Information Technology Risk and General Counsel

and incorporates relevant cybersecurity risk updates and metrics.

We conduct periodic risk assessments and adjust and enhance

our cybersecurity program in response to the evolving

cybersecurity landscape and to align with regulatory and industry

standards.

We also employ a process designed to periodically assess the

cybersecurity risks associated with the engagement of third-party

vendors and service providers. This assessment is conducted on

the basis of, among other factors, the types of products or

services provided and the extent and type of data accessed or

processed by the third party.

Cybersecurity Governance

Our Board’s Risk and Liquidity Oversight Committee oversees

Jefferies’ enterprise risk management. Oversight includes

annually reviewing and approving the risk management

framework and overarching risk appetite statements, which

includes reviewing technology, cybersecurity and privacy risk and


15		Jefferies Financial Group Inc.

reviewing the steps management has taken to monitor and

control such exposures. The CISO keeps the Board informed

about our security posture and cybersecurity maturity program

on a regular basis, providing updates about the current threat

landscape and related risks, cybersecurity events, significant

incidents and new initiatives.

Our cybersecurity program is periodically assessed by the

Internal Audit Department. The results of these audits are

reported to the Audit Committee. Any resulting findings and

associated actions to address issues are tracked and managed

to completion. In addition, the Information Technology Risk team

provides key risk indicators (“KRIs”) monthly to the Operational

Risk Committee whose members include the CIO, Chief Risk

Officer (“CRO”), Head of Internal Audit and the CISO. The monthly

presentation includes updates on key security incidents and the

trending of cybersecurity KRIs.

Our dedicated GIS team is led by the CISO, who reports to the

CIO. The CISO has extensive experience in cybersecurity and

technology with over twenty years’ experience managing

cybersecurity in the financial and consulting services industries

and is responsible for all aspects of cybersecurity across our

global businesses. The CISO works closely with the CIO, Chief

Financial Officer, CRO and the Legal and Compliance

Departments to develop and advance our cybersecurity strategy.

Item 2. Properties

Our global headquarters and principal executive offices are

located at 520 Madison Avenue, New York, New York, with our

European and the Middle East headquarters in London and our

Asia-Pacific headquarters in Hong Kong and other offices and

operations located across the U.S. and around the world. In

addition, we maintain backup data center facilities with

redundant technologies for each of our three main data center

hubs in Jersey City, London and Hong Kong. We lease all of our

office space, or contract via service arrangement, which

management believes is adequate for our business. The facilities

vary in size and have leases expiring at various times, subject, in

certain instances, to renewal options. Additionally, HomeFed

owns and develops various real estate properties in the U.S.

Item 3. Legal Proceedings

Many aspects of our business involve substantial risks of legal

and regulatory liability. In the normal course of business, we have

been named as defendants or co-defendants in lawsuits involving

primarily claims for damages. We are also involved in a number

of judicial and regulatory matters, including exams, investigations

and similar reviews, arising out of the conduct of our business.

Based on currently available information, we do not believe that

any matter will have a material adverse effect on our

consolidated financial statements.

In July 2024, we commenced litigation against the former

portfolio manager of 3ǀ5ǀ2 Capital ABS Master Fund LP (the

“Fund”) and a variety of individuals and entities (collectively, the

“defendants”), alleging that the defendants engaged in a

longstanding Ponzi scheme resulting in the misappropriation of

approximately $106 million from investors in the Fund and in

certain related accounts, including a separately managed

account held by the Company. To date, the Company has

recognized a loss of $17.2 million. We anticipate that this

litigation, which will not be resolved in the near term, will result in

the recovery of some or all of our losses but cannot, with any

reliable accuracy, estimate how much we will be able to recover,

or the outcome of this litigation, which may lead to additional

proceedings.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related

Stockholder Matters and Issuer Purchases of Equity Securities

Our common shares are traded on the NYSE under the symbol

JEF. As of January 17, 2025, there were approximately 1,217

record holders of the common shares.

Dividends paid per common share:


	Year Ended November 30,
	2024	2023	2022
First Quarter ...........................................	$0.30	$0.30	$0.30
Second Quarter .....................................	$0.30	$0.30	$0.30
Third Quarter .........................................	$0.35	$0.30	$0.30
Fourth Quarter .......................................	$0.35	$0.30	$0.30

In January 2025, our Board of Directors increased our quarterly

dividend from $0.35 to $0.40 per common share to be paid on

February 27, 2025 to common shareholders of record at

February 14, 2025. The payment of dividends in the future is

subject to the discretion of our Board of Directors and will

depend upon general business conditions, legal and contractual

restrictions on the payment of dividends and other factors that

our Board of Directors may deem to be relevant.

During the year ended November 30, 2024, we purchased a total

of 1.1 million of our common shares for $44.3 million, or an

average price of $40.72 per share, in connection with net-share

settlements under our equity compensation plan. Our equity

compensation plan allows participants to surrender shares to

satisfy certain tax liabilities arising from the vesting of restricted

shares and the distribution of restricted share units.

There were no unregistered sales of equity securities during the

period covered by this report.

The Board of Directors has authorized the repurchase of

common stock up to $250.0 million under a share repurchase

program. We did not purchase any shares under our share

repurchase program during 2024.


November 2024 Form 10-K		16

Stockholder Return Performance Graph

Set forth below is a graph comparing the cumulative total

stockholder return on our common shares against the cumulative

total return of the Standard & Poor’s 500 Stock Index and the

Standard & Poor’s 500 Financials Index for the period

commencing November 30, 2019 to November 30, 2024. Index

data was furnished by S&P Global Market Intelligence. The graph

assumes that $100 was invested on December 31, 2019 in each

of our common stock, the S&P 500 Index and the S&P

500 Financials Index and that all dividends, including quarterly

and special dividends, were reinvested.

Item 6. [Reserved]

Item 7. Management’s Discussion and Analysis of Financial

Condition and Results of Operations

Forward-Looking Statements

This report may contain or incorporate by reference certain

“forward-looking statements” within the meaning of Section 27A

of the Securities Act of 1933, Section 21E of the Securities

Exchange Act of 1934 and/or the Private Securities Litigation

Reform Act of 1995. Forward-looking statements include

statements about our future and statements that are not

historical or current facts. These forward-looking statements are

often preceded by the words “should,” “expect,” “believe,”

“intend,” “may,” “will,” “would,” “could” or similar expressions.

Forward-looking statements may contain expectations regarding

revenues, earnings, operations and other results, and may include

statements of future performance, plans and objectives. Forward-

looking statements also include statements pertaining to our

strategies for future development of our business and products.

Forward-looking statements represent only our belief regarding

future events, many of which by their nature are inherently

uncertain. It is possible that the actual results may differ, possibly

materially, from the anticipated results indicated in these

forward-looking statements. Information regarding important

factors that could cause actual results to differ, perhaps

materially, from those in our forward-looking statements is

contained in this report and other documents we file. You should

read and interpret any forward-looking statement together with

these documents, including the following:

•the description of our business contained in this report under

the caption “Business”;

•the risk factors contained in this report under the caption “Risk

Factors”;

•the discussion of our analysis of financial condition and results

of operations contained in this report under the caption

“Management’s Discussion and Analysis of Financial Condition

and Results of Operations” herein;

•the discussion of our risk management policies, procedures

and methodologies contained in this report under the caption

“Management’s Discussion and Analysis of Financial Condition

and Results of Operations—Risk Management” herein;

•the consolidated financial statements and notes to the

consolidated financial statements contained in this report; and

•cautionary statements we make in our public documents,

reports and announcements.

Any forward-looking statement speaks only as of the date on

which that statement is made. We undertake no obligation to

update any forward-looking statement to reflect events or

circumstances that occur after the date on which the statement

is made, except as required by applicable law.

Our business, by its nature, does not produce predictable or

necessarily recurring earnings. Our results in any given period

can be materially affected by conditions in global financial

markets, economic conditions generally and our own activities

and positions. For a further discussion of the factors that may

affect our future operating results, refer to the risk factors

contained in this report under the caption “Risk Factors”.

Our results of operations for the years ended November 30, 2024

(“2024”) and November 30, 2023 (“2023”) are discussed below.

For a discussion of our results of operations for the year ended

November 30, 2022 (“2022”) and our 2023 results of operations

as compared to our 2022 results of operations, refer to

“Management’s Discussion and Analysis of Financial Condition

and Results of Operations” in Part II, Item 7 of our Annual Report

Form 10-K for the year ended November 30, 2023, which was

filed with the SEC on January 26, 2024.


17		Jefferies Financial Group Inc.

Consolidated Results of Operations

Overview


$ in thousands	2024	2023	% Change
Net revenues ........................................	$7,034,803	$4,700,417	49.7%
Non-interest expenses ........................	6,029,257	4,346,148	38.7%
Earnings from continuing operations before income taxes .............................	1,005,546	354,269	183.8%
Income tax expense from continuing operations ..............................................	293,194	91,881	219.1%
Net earnings from continuing operations ..............................................	712,352	262,388	171.5%
Net earnings from discontinued operations (including gain on disposal), net of income taxes ............	3,667	—	N/M
Net losses attributable to noncontrolling interests .......................	(27,364)	(14,846)	84.3%
Net losses attributable to redeemable noncontrolling interests .	—	(454)	(100.0)%
Preferred stock dividends ....................	74,110	14,616	407.0%
Net earnings attributable to common shareholders ..........................................	669,273	263,072	154.4%
Effective tax rate from continuing operations .............................................	29.2%	25.9%

$ in thousands	2023	2022	% Change
Net revenues ........................................	$4,700,417	$5,978,838	(21.4)%
Non-interest expenses ........................	4,346,148	4,923,276	(11.7)%
Earnings from continuing operations before income taxes .............................	354,269	1,055,562	(66.4)%
Income tax expense from continuing operations ..............................................	91,881	273,852	(66.4)%
Net earnings from continuing operations ..............................................	262,388	781,710	(66.4)%
Net losses attributable to noncontrolling interests .......................	(14,846)	(2,397)	519.4%
Net losses attributable to redeemable noncontrolling interests .	(454)	(1,342)	(66.2)%
Preferred stock dividends ....................	14,616	8,281	76.5%
Net earnings attributable to common shareholders ..........................................	263,072	777,168	(66.1)%
Effective tax rate from continuing operations .............................................	25.9%	25.9%

N/M — Not Meaningful

Executive Summary

Consolidated Results

•Net revenues were $7.03 billion for 2024, up 49.7% compared

to $4.70 billion for 2023, reflecting strength across all lines of

business primarily due to market share gains and a stronger

overall market for our services.

•Earnings from continuing operations before income taxes were

$1.01 billion for 2024, up 183.8% compared to $354.3 million

for 2023.

•Our overall results were strong for 2024, driven by strength and

continued momentum in Investment Banking and Equities.

•Net earnings from discontinued operations (including gain on

disposal), net of income taxes were $3.7 million and reflects

the current year results of OpNet offset by a gain on the sale of

OpNet, which closed in August 2024.

Business Results

•Investment banking net revenues were $3.44 billion for 2024,

up 51.6% compared to $2.27 billion for 2023. Advisory net

revenues were $1.81 billion, up 51.1% compared to $1.20

billion for 2023, primarily attributable to market share gains

and increased overall market opportunity. Total underwriting

net revenues were $1.49 billion for 2024, up 53.4% compared

to $970.5 million for 2023, due to increased equity and debt

underwriting activity as a result of a more robust equity and

general capital markets environment.

•Equities net revenues were $1.59 billion for 2024, up 39.8%

compared to $1.14 billion for 2023, attributable to market

share gains, increased volumes and more favorable trading

opportunities driving stronger results across most of our

equities business lines

•Fixed income net revenues were $1.17 billion, up 6.8%

compared to $1.09 billion for 2023, driven by stronger results

from our distressed trading and securitized markets

businesses, partially offset by reduced activity in our global

structured solutions business and less favorable results across

our emerging markets, credit e-trading, corporates, and

municipal securities businesses, which were particularly strong

in the prior fiscal year.

•Asset management net revenues were $803.7 million for 2024,

compared to $188.3 million for 2023. Investment return for

2024 were higher on improved performance across a number

of our investment strategies, partially offset by $36.2 million of

revenue losses associated with our investment in Weiss. Other

investments net revenues for the current year were

meaningfully higher than the prior year largely due to the

inclusion of Stratos and Tessellis in our overall results as these

entities became consolidated subsidiaries in the fourth quarter

of 2023.

Non-interest Expenses

•Compensation and benefits expense was $3.66 billion for

2024, an increase of $1.12 billion, or 44.3%, compared to $2.54

billion for 2023. Compensation and benefits expense as a

percentage of Net revenues was 52.0% for 2024, compared to

53.9% for 2023. The ratio for 2024 was impacted by the

consolidation of Stratos and Tessellis, which have lower

compensation ratios.

•Non-compensation expenses were $2.37 billion for 2024, an

increase of $558.8 million, or 30.9%, compared to $1.81 billion

for 2023. The increase in non-compensation expenses is

primarily attributed to increased brokerage and clearing fees

associated with increased trading volumes and higher

technology and communication and business development

expenses. Other expenses include bad debt expenses largely

related to our losses associated with Weiss Strategy Advisers

upon its shutdown in the first quarter of 2024. In addition, Non-

compensation expenses were higher due to the inclusion of

Stratos and Tessellis as operating subsidiaries, particularly

impacting depreciation and amortization expense, following

the consolidation of these entities in the fourth quarter of 2023,

partially offset by the impact of the spin-off of Vitesse Energy

in January 2023 and sale of Foursight in April 2024. The

increased cost of sales for 2024 reflects increased sales

activity within our HomeFed real estate subsidiary. Non-

compensation expenses as a percentage of Net revenues

improved from 38.5% in 2023 to 33.7% in 2024 as our revenue

growth outpaced expense growth. The ratio includes our Other

investments portfolio, which have higher non-compensation

expense ratios.


November 2024 Form 10-K		18

Headcount

•At November 30, 2024, we had 7,822 employees globally

across all of our consolidated subsidiaries within our

Investment Banking and Capital Markets and Asset

Management reportable segments, an increase of 258

employees from our headcount of 7,564 at November 30, 2023.

Included within our global headcount are 2,063 employees of

our Stratos, Tessellis, HomeFed and M Science subsidiaries.

During the past year, we have increased the number of our

Investment Banking Managing Directors and related staff,

along with additional technology and corporate staff to support

our growth and strategic priorities.

Revenues by Source

We present our results as two reportable business segments:

Investment Banking and Capital Markets and Asset Management.

Additionally, corporate activities are fully allocated to each of

these reportable business segments. Beginning in fiscal 2024, we

now refer to “Merchant banking” as “Other investments” in our

Asset Management reportable segment.

Net revenues presented for our Investment Banking and Capital

Markets reportable segment include allocations of interest

income and interest expense as we assess the profitability of

these businesses inclusive of the net interest revenue or expense

associated with the respective activities, including the net

interest cost of allocated short- and long-term debt, which is a

function of the mix of each business’s associated assets and

liabilities and the related funding costs.

The remainder of our “Consolidated Results of Operations” is

presented on a detailed product and expense basis. Our

“Revenues by Source” is reported along the following business

lines: Investment Banking, Equities, Fixed Income and Asset

Management.

Foreign currency transaction gains or losses, debt valuation

adjustments on derivative contracts, gains and losses on

investments held in deferred compensation plans or certain other

corporate income items are not considered by management in

assessing the financial performance of our operating businesses

and are, therefore, not reported as part of our business segment

results.


	2024		2023
$ in thousands	Amount	% of Net Revenues	Amount	% of Net Revenues	% Change
Advisory ............................	$1,811,634	25.8%	$1,198,916	25.5%	51.1%
Equity underwriting ..........	799,804	11.4	560,243	11.9	42.8
Debt underwriting .............	689,227	9.8	410,208	8.7	68.0
Other investment banking ........................	144,122	2.0	102,851	2.2	40.1
Total Investment Banking ........................	3,444,787	49.0	2,272,218	48.3	51.6
Equities ..............................	1,592,793	22.6	1,139,425	24.2	39.8
Fixed income .....................	1,166,761	16.6	1,092,736	23.2	6.8
Total Capital Markets ......	2,759,554	39.2	2,232,161	47.4	23.6
Total Investment Banking and Capital Markets (1) ..................	6,204,341	88.2	4,504,379	95.7	37.7
Asset management fees and revenues ..............	103,488	1.5	93,678	2.0	10.5
Investment return .............	212,209	3.0	154,461	3.3	37.4
Allocated net interest (2) .	(62,135)	(1.0)	(49,519)	(1.1)	25.5
Other investments, inclusive of net interest .........................	550,107	7.8	(10,275)	(0.2)	N/M
Total Asset Management ...............	803,669	11.3	188,345	4.0	326.7
Other ...................................	26,793	0.5	7,693	0.3	248.3
Net revenues .....................	$7,034,803	100.0%	$4,700,417	100.0%	49.7%

	2023		2022
$ in thousands	Amount	% of Net Revenues	Amount	% of Net Revenues	% Change
Advisory .............................	$1,198,916	25.5%	$1,778,003	29.7%	(32.6)%
Equity underwriting ..........	560,243	11.9	538,947	9.0	4.0
Debt underwriting .............	410,208	8.7	490,873	8.2	(16.4)
Other investment banking ........................	102,851	2.2	63,245	1.1	62.6
Total Investment Banking ........................	2,272,218	48.3	2,871,068	48.0	(20.9)
Equities ..............................	1,139,425	24.2	1,069,701	17.9	6.5
Fixed income .....................	1,092,736	23.2	800,492	13.4	36.5
Total Capital Markets ......	2,232,161	47.4	1,870,193	31.3	19.4
Total Investment Banking and Capital Markets (1) ..................	4,504,379	95.7	4,741,261	79.3	(5.0)
Asset management fees and revenues ...............	93,678	2.0	89,127	1.5	5.1
Investment return .............	154,461	3.3	156,594	2.6	(1.4)
Allocated net interest (2) .	(49,519)	(1.1)	(54,429)	(0.9)	(9.0)
Other investments, inclusive of net interest .........................	(10,275)	(0.2)	1,052,199	17.6	N/M
Total Asset Management ...............	188,345	4.0	1,243,491	20.8	(84.9)
Other ...................................	7,693	0.3	(5,914)	(0.1)	N/M
Net revenues .....................	$4,700,417	100.0%	$5,978,838	100.0%	(21.4)%

N/M — Not Meaningful

(1)Allocated net interest is not separately disaggregated for Investment Banking

and Capital Markets. This presentation is aligned to our Investment Banking

and Capital Markets internal performance measurement.

(2)Allocated net interest represents an allocation to Asset Management of our

long-term debt interest expense, net of interest income on our Cash and cash

equivalents and other sources of liquidity. Allocated net interest has been

disaggregated to increase transparency and to make clearer actual

Investment return. We believe that aggregating Investment return and

Allocated net interest would obscure the Investment return by including an

amount that is unique to our credit spreads, debt maturity profile, capital

structure, liquidity risks and allocation methods.


19		Jefferies Financial Group Inc.

Beginning in the fourth quarter of 2024, revenues from corporate

equity derivative transactions historically included within Other

investment banking net revenues were reclassified to Equities net

revenues as the underlying business has matured and has

started to generate meaningful revenues. Prior year amounts

have been revised to conform to this reclassification change to

the current year reporting.

Investment Banking Revenues

Investment banking is composed of revenues from:

•advisory services with respect to mergers and acquisitions,

debt financing, restructurings and private capital transactions;

•underwriting services, which include debt underwriting and

placement services related to investment grade debt, high yield

bonds, leveraged loans, emerging market debt, global

structured notes, municipal debt, mortgage-backed and asset-

backed securities; equity underwriting and placement services

related to equity offerings, preferred stock, and equity-linked

securities; and loan syndication;

•our 50% share of net earnings from our corporate lending joint

venture, Jefferies Finance;

•our 45% share of net earnings from our commercial real estate

joint venture, Berkadia (which includes commercial mortgage

origination and servicing);

•Foursight, our wholly-owned subsidiary engaged in the lending

and servicing of automobile loans (until the sale in April 2024);

•securities and loans received or acquired in connection with

our investment banking activities; and

•certain revenue-sharing agreements with SMBC primarily

associated with investment banking business opportunities.

Investment banking net revenues were $3.44 billion for 2024, up

51.6% compared to $2.27 billion for 2023. We have made

extensive investments in our investment banking business,

including a significant number of professional hires, particularly

at the managing director level, and have expanded our

capabilities across sectors and regions, which has led to market

share gains.


	Deals Completed
	2024	2023	2022
Advisory transactions ....................	364	287	364
Public and private equity and convertible offerings ..................	243	182	166
Public and private debt financings ....................................	1,080	699	653


	Aggregate Value
$ in millions	2024	2023	2022
Advisory transactions ....................	$359.2	$259.1	$336.7
Public and private equity and convertible offerings ..................	83.5	59.6	37.8
Public and private debt financings ....................................	516.1	213.6	250.6

Advisory net revenues were $1.81 billion for 2024, up 51.1%

compared to $1.20 billion for 2023, driven by market share gains

attributable to an increase in transaction levels across most

sectors in the global mergers and acquisitions markets.

Total underwriting net revenues were $1.49 billion for 2024, up

53.4% compared to $970.5 million for 2023, due to increased

equity and debt underwriting activity as a result of a more robust

equity and general capital markets environment.

Other investment banking net revenues were $144.1 million for

2024, compared to $102.9 million for 2023. Results from our

share of the net earnings of our Jefferies Finance joint venture

increased, as net revenues were slightly improved and certain

investment and loan losses incurred in 2023 were not repeated.

Revenues from our share of the net earnings of our Berkadia joint

venture increased from the prior year period primarily driven by

higher interest income and servicing fees attributable to a larger

and growing loan servicing portfolio, as well as an increase in

sales volumes. In addition, during the current year, we recognized

a $24.2 million gain from the sale of Foursight. Other investment

banking revenue also includes net gains on investments and

revenue from our strategic alliance with SMBC.

Our investment banking backlog remains robust and we see

signs that underwriting and mergers and acquisitions activity in

the upcoming year will remain strong, although execution is

always uncertain and dependent on market conditions. Backlog

snapshots are subject to limitations as the time frame for the

realization of revenues from these expected transactions varies

and is influenced by factors we do not control. Transactions not

included in the estimate may occur, and expected transactions

may also be modified or cancelled.

Equities Net Revenues

Equities is composed of net revenues from:

•services provided to our clients from which we earn

commissions or spread revenue by executing, settling and

clearing transactions for clients;

•advisory services offered to clients;

•financing, securities lending and other prime brokerage

services offered to clients, including capital introductions and

outsourced trading;

•corporate equity derivative transactions; and

•wealth management services.

Equities net revenues were $1.59 billion for 2024, an increase of

39.8% compared to $1.14 billion in 2023, attributable to market

share gains, increased volumes and more favorable trading

opportunities driving stronger results across most of our equities

business lines. Results in our cash and electronic trading

businesses significantly increased over the prior year period.

Results in our prime services business were also strong and

revenue from equity derivative transactions has continued to

grow as the business continues to mature.

Fixed Income Net Revenues

Fixed income is composed of net revenues from:

•executing transactions for clients and making markets in

securitized products, investment grade, high-yield, distressed,

emerging markets, municipal, sovereign and emerging markets

securities and loans;

•customized products and corporate hedging and foreign

currency solutions through derivative products; and

•financing and other structuring services.


November 2024 Form 10-K		20

Fixed income net revenues were $1.17 billion for 2024, up 6.8%

compared to $1.09 billion in 2023, driven by stronger results from

our distressed trading and securitized markets businesses,

partially offset by reduced activity in our global structured

solutions business and lower results across our emerging

markets, credit e-trading, corporates, and municipal securities

businesses, which were particularly strong in the prior fiscal year.

Asset Management

We operate a diversified alternative asset management platform

offering institutional clients a range of investment strategies

directly and through our affiliated asset managers. We provide

certain of our affiliated asset managers access to our global

marketing and distribution platform, as well as operational

infrastructure and support. We often invest our own capital in the

strategies offered by us and associated third-party asset

managers in which we have an interest.

Asset management revenues include the following:

•management and performance fees from funds and accounts

managed by us;

•revenue from affiliated asset managers where we are entitled

to portions of their revenues and/or profits, as well as earnings

on our ownership interests in our affiliated asset managers;

•investment income from our capital invested in and managed

by us and our affiliated asset managers; and

•revenues from investments held in our other investments

portfolio, including consolidated operations from real estate

development activities, foreign exchange trading (Stratos

consolidated from the beginning of the fourth quarter of 2023)

and telecommunications activities related to Tessellis

(consolidated at the end of the fourth quarter of 2023) as well

as OpNet (from the at the end of the fourth quarter of 2023

through its sale in August 2024) and investments in certain

public equity securities and private companies. Prior fiscal

years include revenues from oil and gas activities until the spin-

off of our interest in Vitesse Energy in January 2023.

Asset management fees and revenues are impacted by the level

of assets under management and the performance return of

those assets, for the most part on an absolute basis, and, in

certain cases, relative to a benchmark or hurdle. These

components can be affected by financial markets, profits and

losses in the applicable investment portfolios and client capital

activity. Further, asset management fees vary with the nature of

investment management services. The terms under which clients

may terminate our investment management agreements, and the

requisite notice period for such termination, varies depending on

the nature of the investment vehicle and the liquidity of the

portfolio assets. In some instances, performance fees and

similar revenues are recognized once a year, when they become

fixed and determinable and are not probable of being

significantly reversed, typically in December. As a result, a

significant portion of our performance fees and similar revenues

generated from investment returns in a calendar year are

recognized in our following fiscal year.


$ in thousands	2024	2023	% Change
Asset management fees:
Equities .................................................	$5,145	$3,785	35.9%
Multi-asset ............................................	45,555	30,082	51.4%
Total asset management fees ..........	50,700	33,867	49.7%
Revenue from strategic affiliates (1)	52,788	59,811	(11.7)%
Total asset management fees and revenues ..........................................	103,488	93,678	10.5%
Investment return ................................	212,209	154,461	37.4%
Other investments ...............................	550,107	(10,275)	N/M
Allocated net interest ..........................	(62,135)	(49,519)	25.5%
Total Asset Management ..................	$803,669	$188,345	326.7%

$ in thousands	2023	2022	% Change
Asset management fees:
Equities .................................................	$3,785	$7,198	(47.4)%
Multi-asset ............................................	30,082	16,327	84.2%
Total asset management fees ..........	33,867	23,525	44.0%
Revenue from strategic affiliates (1)	59,811	65,602	(8.8)%
Total asset management fees and revenues ..........................................	93,678	89,127	5.1%
Investment return ................................	154,461	156,594	(1.4)%
Other investments ...............................	(10,275)	1,052,199	N/M
Allocated net interest ..........................	(49,519)	(54,429)	(9.0)%
Total Asset Management ..................	$188,345	$1,243,491	(84.9)%

(1)These amounts include our share of fees received by affiliated asset

management companies with which we have revenue and profit share

arrangements, as well as earnings on our ownership interest in affiliated asset

managers.

Asset management fees and revenues were $103.5 million for

2024, compared to $93.7 million for 2023, reflecting higher

management and performance fees on funds managed by us,

partially offset by a decrease in revenues from our strategic

affiliates.

Investment return was $212.2 million for 2024, compared to

$154.5 million for 2023, with the increase driven by improved

returns generated across a number of our fund strategies,

partially offset by losses of $36.2 million associated with our

investment in Weiss.

Other investments net revenues were $550.1 million for 2024,

compared to negative net revenues of $(10.3) million for 2023,

with the increase primarily driven by the consolidation of Stratos

and Tessellis in the fourth quarter of 2023, partially offset by the

spin-off of Vitesse Energy in January 2023. Additionally, during

the current year, Other investments net revenues include net

gains on investment positions compared to losses recognized in

the prior fiscal year on certain positions.


21		Jefferies Financial Group Inc.

Assets Under Management

Aggregate net asset values or net asset value equivalent assets

under management:


$ in millions	2024	2023
Seed capital net asset values of investments .................	$1,761	$1,763
Financed net asset values of investments ......................	1,174	1,785
Net asset values of investments (1) ..................................	2,935	3,548
Assets under management by affiliated asset managers with revenue sharing arrangements (2) ....	19,498	22,379
Third-party and other investments actively managed by our wholly-owned managers (3) ....................................	2,596	2,100
Total aggregate net asset values or net asset value equivalent assets under management ........................	$25,029	$28,027

(1)Revenues related to the investments made by us are presented in Investment

return within the results of our asset management businesses.

(2)Revenues from our share of fees received by affiliated asset managers are

presented in Revenue from strategic affiliates within the results of our asset

management businesses.

(3)We earn asset management fees as a result of the third-party investments,

which are presented in Asset management fees and revenues within the

results of our asset management businesses.

The tables below include third-party and other assets under

management by us, excluding those of our affiliated asset

managers.

Assets under management by predominant asset class:


$ in millions	2024	2023
Assets under management:
Equities ..........................................................................	$473	$448
Multi-asset ....................................................................	2,123	1,606
Total ...............................................................................	$2,596	$2,054

Change in assets under management:


$ in millions	2024	2023
Assets under management:
Balance, beginning of period ......................................	$2,054	$1,248
Net cash inflows ...........................................................	442	693
Net market appreciation (depreciation) ...................	100	113
Balance, end of period ................................................	$2,596	$2,054

Assets under management are based on the net asset value or

net asset value equivalent of a fund plus unfunded capital

commitments to the fund, the net asset value equivalents of

separately managed accounts and the fair value of any invested

capital in our consolidated funds and separately managed

accounts. Assets under management is generally based on how

fee and revenues are calculated and the measure also includes

funds and separately managed accounts for which we do not

charge fees.

Our definition of assets under management is not based on any

definition contained in any of our investment management

agreements and differs from the manner in which “Regulatory

Assets Under Management” is reported to the SEC on Form ADV.

Asset Management Investments

Our asset management business makes seed and additional

strategic investments directly in alternative asset management

separately managed accounts and co-mingled funds where we

act as the asset manager or in affiliated asset managers where

we have strategic relationships and participate in the revenues or

profits of the affiliated manager.

Investments by type of asset manager:


$ in thousands	2024	2023
Jefferies Financial Group Inc.; as manager:
Fund investments (1) ...................................................	$199,248	$179,533
Separately managed accounts (2) ............................	177,998	187,350
Total ...............................................................................	$377,246	$366,883
Strategic affiliates; as manager:
Fund investments (1) ...................................................	$944,940	$936,743
Separately managed accounts (2) ............................	439,043	458,894
Investments in asset managers .................................	81,403	40,363
Total ...............................................................................	$1,465,386	$1,436,000
Total asset management investments ...................	$1,842,632	$1,802,883

(1)Due to the level or nature of an investment in a fund, we may consolidate that

fund; and accordingly, the assets and liabilities of the fund are included in the

representative line items in our consolidated financial statements. At

November 30, 2024 and 2023, $11.3 million and $11.9 million, respectively,

represent net investments in funds that have been consolidated in our

financial statements.

(2)Where we have investments in a separately managed account, the assets and

liabilities of such account are presented in our consolidated financial

statements within each respective line item.

Other

Other revenues include foreign currency transaction gains or

losses, debt valuation adjustments on derivative contracts, gains

and losses on investments held in deferred compensation plans

or certain other corporate income items that are not attributed to

business segments as management does not consider such

amounts in assessing the financial performance of our operating

businesses.

Non-interest Expenses


$ in thousands	2024	2023	% Change
Compensation and benefits ...........	$3,659,588	$2,535,272	44.3%
Brokerage and clearing fees ..........	432,721	366,702	18.0
Underwriting costs ..........................	68,492	61,082	12.1
Technology and communications	546,655	477,028	14.6
Occupancy and equipment rental .	118,611	106,051	11.8
Business development ...................	283,459	177,541	59.7
Professional services .....................	296,204	266,447	11.2
Depreciation and amortization ......	190,326	112,201	69.6
Cost of sales ....................................	206,283	29,435	600.8
Other ..................................................	226,918	214,389	5.8
Total non-interest expenses .........	$6,029,257	$4,346,148	38.7%

$ in thousands	2023	2022	% Change
Compensation and benefits ...........	$2,535,272	$2,589,044	(2.1)%
Brokerage and clearing fees ..........	366,702	347,805	5.4
Underwriting costs ..........................	61,082	42,067	45.2
Technology and communications	477,028	444,011	7.4
Occupancy and equipment rental .	106,051	108,001	(1.8)
Business development ...................	177,541	150,500	18.0
Professional services .....................	266,447	240,978	10.6
Depreciation and amortization ......	112,201	172,902	(35.1)
Cost of sales ....................................	29,435	440,837	(93.3)
Other ..................................................	214,389	387,131	(44.6)
Total non-interest expenses .........	$4,346,148	$4,923,276	(11.7)%


November 2024 Form 10-K		22

Total Non-interest Expenses

Non-interest expenses were $6.03 billion for 2024, an increase of

$1.68 billion, or 38.7%, compared to $4.35 billion for 2023,

primarily due to an increase in overall business activity and

compensation expense. Non-compensation expenses are also

impacted by the inclusion of Stratos and Tessellis as operating

subsidiaries following the consolidation of these entities in the

fourth quarter of 2023, partially offset by the impact of the spin-

off of Vitesse Energy in January 2023 and the sale of Foursight in

April 2024.

Compensation and Benefits

Compensation and benefits expense consists of salaries,

benefits, commissions, annual cash compensation and share-

based awards and the amortization of share-based and cash

compensation awards to employees.

Cash and share-based awards and a portion of cash awards

granted to employees as part of year end compensation generally

contain provisions such that employees who terminate their

employment or are terminated without cause may continue to

vest in their awards, so long as those awards are not forfeited as

a result of other forfeiture provisions (primarily non-compete

clauses) of those awards. Accordingly, the compensation

expense for a portion of awards granted at year end as part of

annual compensation is recorded during the year of the award.

Compensation and benefits expense includes amortization

expense associated with these awards to the extent vesting is

contingent on future service. In addition, certain awards to our

Chief Executive Officer and our President contain market and

performance conditions and the awards are amortized over their

service periods.

Compensation and benefits expense was $3.66 billion for 2024

compared to $2.54 billion for 2023. A significant portion of our

compensation expense is highly variable with net revenues.

Compensation and benefits expense as a percentage of Net

revenues was 52.0% for 2024 and 53.9% for 2023. The ratio for

2024 was impacted by the consolidation of Stratos and Tessellis,

which have much lower compensation rates proportionate to net

revenues.

Compensation expense related to the amortization of share- and

cash-based awards amounted to $513.7 million for 2024

compared to $370.0 million for 2023.

At November 30, 2024, we had 7,822 employees globally across

all of our consolidated subsidiaries within our Investment

Banking and Capital Markets and Asset Management reportable

segments, an increase of 258 employees from our headcount of

7,564 at November 30, 2023. Included within our global

headcount are 2,063 employees of our Stratos, Tessellis,

HomeFed, and M Science subsidiaries. During the past year, we

have increased the number of our Investment Banking Managing

Directors and related staff along with additional technology and

corporate staff to support our growth and strategic priorities.

Refer to Note 15, Compensation Plans included in this Annual

Report on Form 10-K, for further details on compensation and

benefits.

Non-interest Expenses (Excluding Compensation and Benefits)

Non-interest expenses, excluding Compensation and benefits, as

a percentage of Net revenues improved from 38.5% in 2023 to

33.7% in 2024 as our revenue growth outpaced expense growth.

The ratio includes our Other investments portfolio, which has a

higher non-compensation expense ratio.

Non-interest expenses was impacted by the following:

•Brokerage and clearing fees were higher by $66.0 million due

to increased trading volumes.

•Technology and communication were higher by $69.6 million

related to the continued development of various trading and

management systems and increased market data costs.

•Business development was higher by $105.9 million reflecting

increased investment banking advisory and capital markets

underwriting activity.

•Professional services expenses were higher by $29.8 million

primarily on increased transaction related legal fees

associated with capital markets transaction and litigation as

well as consulting fees paid to outsourced vendors related to

strategic technology investment initiatives.

•Cost of sales and depreciation and amortization expenses

were higher by $255.0 million primarily reflecting the

consolidation of Stratos and Tessellis, partially offset by the

spin-off of Vitesse Energy in January 2023 and sale of

Foursight in April 2024.

Income Taxes

•The provision for income taxes on continuing operations was

$293.2 million for 2024, equating to an effective tax rate of

29.2%, compared to $91.9 million for 2023, equating to an

effective tax rate of 25.9%. The higher rate for 2024 is largely

due to a smaller tax benefit from share-based awards in the

current year.

•The Organization for Economic Co-operation and Development

(“OECD”) Pillar Two Model Rules (“Pillar Two”) for the global

15% minimum tax have been adopted in a number of

jurisdictions in which we operate. Pillar Two will be applicable

to us beginning December 1, 2024 and we do not expect a

material impact on our income tax expense for the year ended

November 30, 2025.

Refer to Note 20, Income Taxes in our consolidated financial

statements included in this Annual Report on Form 10-K, for

further details on income taxes.

Accounting Developments

For a discussion of recently issued accounting developments and

their impact on our consolidated financial statements, refer to

Note 3, Accounting Developments in our consolidated financial

statements included in this Annual Report on Form 10-K.

Critical Accounting Estimates

Our consolidated financial statements are prepared in conformity

with U.S. generally accepted accounting principles (“U.S. GAAP”),

which requires management to make estimates and

assumptions that affect the amounts reported in our

consolidated financial statements and related notes. Actual

results can and may differ from estimates. These differences

could be material to our consolidated financial statements.


23		Jefferies Financial Group Inc.

We believe our application of U.S. GAAP and the associated

estimates are reasonable. Our accounting estimates are

reevaluated, and adjustments are made when facts and

circumstances dictate a change. Historically, we have found our

application of accounting policies to be appropriate, and actual

results have not differed materially from those determined using

necessary estimates.

For further discussions of the following significant accounting

policies and other significant accounting policies, refer to Note 2,

Summary of Significant Accounting Policies in our consolidated

financial statements included in this Annual Report on Form 10-

Valuation of Financial Instruments

Financial instruments owned and Financial instruments sold, not

yet purchased are recorded at fair value. The fair value of a

financial instrument is the amount that would be received to sell

an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date (the exit

price). Unrealized gains or losses are generally recognized in

Principal transactions revenues in our Consolidated Statements

of Earnings.

For information on the composition of our Financial instruments

owned and Financial instruments sold, not yet purchased

recorded at fair value, refer to Note 6, Fair Value Disclosures in

our consolidated financial statements included in this Annual

Report on Form 10-K.

Fair Value Hierarchy – In determining fair value, we maximize the

use of observable inputs and minimize the use of unobservable

inputs by requiring that observable inputs be used when

available. Observable inputs are inputs that market participants

would use in pricing the asset or liability based on market data

obtained from independent sources. Unobservable inputs reflect

our assumptions that market participants would use in pricing

the asset or liability developed based on the best information

available in the circumstances. We apply a hierarchy to

categorize our fair value measurements broken down into three

levels based on the transparency of inputs, where Level 1 uses

observable prices in active markets and Level 3 uses valuation

techniques that incorporate significant unobservable inputs.

Greater use of management judgment is required in determining

fair value when inputs are less observable or unobservable in the

marketplace, such as when the volume or level of trading activity

for a financial instrument has decreased and when certain

factors suggest that observed transactions may not be reflective

of orderly market transactions. Judgment must be applied in

determining the appropriateness of available prices, particularly

in assessing whether available data reflects current prices and/or

reflects the results of recent market transactions. Prices or

quotes are weighed when estimating fair value with greater

reliability placed on information from transactions that are

considered to be representative of orderly market transactions.

Fair value is a market-based measure; therefore, when market

observable inputs are not available, our judgment is applied to

reflect those judgments that a market participant would use in

valuing the same asset or liability. The availability of observable

inputs can vary for different products. We use prices and inputs

that are current as of the measurement date even in periods of

market disruption or illiquidity. The valuation of financial

instruments categorized within Level 3 of the fair value hierarchy

involves the greatest extent of management judgment. Refer to

Note 2, Summary of Significant Accounting Policies and Note 6,

Fair Value Disclosures in our consolidated financial statements

included in this Annual Report on Form 10-K for further

information on the definitions of fair value, Level 1, Level 2 and

Level 3 and related valuation techniques.

For information on the composition of our Financial instruments

owned and Financial instruments sold, not yet purchased

recorded at fair value and the composition of activity of our Level

3 assets and Level 3 liabilities, refer to Note 6, Fair Value

Disclosures in our consolidated financial statements included in

this Annual Report on Form 10-K.

Controls Over the Valuation Process for Financial Instruments –

Our Independent Price Verification Group, independent of the

trading function, plays an important role in determining that our

financial instruments are appropriately valued and that fair value

measurements are reliable. This is particularly important where

prices or valuations that require inputs are less observable. In the

event that observable inputs are not available, the control

processes are designed to assure that the valuation approach

utilized is appropriate and consistently applied and that the

assumptions are reasonable. Where a pricing model is used to

determine fair value, these control processes include reviews of

the pricing model’s theoretical soundness and appropriateness

by risk management personnel with relevant expertise who are

independent from the trading desks. In addition, recently

executed comparable transactions and other observable market

data are considered for purposes of validating assumptions

underlying the model.

Income Taxes

Significant judgment is required in estimating our provision for

income taxes. In determining the provision for income taxes, we

must make judgments and interpretations about how to apply

inherently complex tax laws to numerous transactions and

business events. In addition, we must make estimates about the

amount, timing and geographic mix of future taxable income,

which includes various tax planning strategies to utilize tax

attributes and deferred tax assets before they expire.

We record a valuation allowance to reduce our net deferred tax

asset to the amount that is more likely than not to be realized. We

are required to consider all available evidence, both positive and

negative, and to weigh the evidence when determining whether a

valuation allowance is required and the amount of such valuation

allowance. Generally, greater weight is required to be placed on

objectively verifiable evidence when making this assessment, in

particular on recent historical operating results.

We also record reserves for unrecognized tax benefits based on

our assessment of the probability of successfully sustaining tax

filing positions. Management exercises significant judgment

when assessing the probability of successfully sustaining tax

filing positions, and in determining whether a contingent tax

liability should be recorded and if so, estimating the amount. If

our tax filing positions are successfully challenged, payments

could be required that are in excess of reserved amounts or we

may be required to reduce the carrying amount of our net

deferred tax asset, either of which could be significant to our

financial condition or results of operations.

Impairment of Equity Method Investments

We evaluate equity method investments for impairment when

operating losses or other factors may indicate a decrease in

value which is other than temporary. We consider a variety of

factors including economic conditions nationally and in an

investment’s geographic area of operation, adverse changes in

the industry in which an investment operates, declines in

business prospects, deterioration in earnings, increasing costs of

operations and other relevant factors specific to the


November 2024 Form 10-K		24

investee. Whenever we believe conditions or events indicate that

one of these investments might be significantly impaired, we

generally obtain from such investee updated cash flow

projections and obtain other relevant information related to

assessing the overall valuation of the investee. Utilizing this

information, we assess whether the investment is considered to

be other-than-temporarily impaired. To the extent an investment

is deemed to be other-than-temporarily impaired, an impairment

charge is recognized for the amount, if any, by which the

investment’s book value exceeds our estimate of the

investment’s fair value.

In the first quarter of 2023, we performed a valuation of our

equity method investment in Golden Queen as forecasts of the

expected future production of gold and silver from its mine had

declined from previous periods. Our estimate of fair value was

based on a discounted cash flow analysis, which included

management’s projections of future Golden Queen cash flows

and a discount rate of 11.0%. As a result, an impairment loss of

$22.1 million was recorded in Other income for the three months

ended February 28, 2023. During the three months ended May 31,

2023, we recognized an additional impairment loss of $7.3

million primarily due to further declines in cash flows at Golden

Queen resulting in a carrying value our investment of $16.8

million at May 31, 2023. During the three months ended August

31, 2023, we recognized an additional impairment loss of $27.8

million, which reduced the carrying value of our investment to

zero and also reduced the carrying value of shareholder loans to

Golden Queen to $8.8 million at August 31, 2023. The impairment

for the three months ended August 31, 2023 was primarily based

on our estimate of what could be recognized in a sale transaction

for the investment. In the fourth quarter of 2023, we sold Golden

Queen and recognized a gain of $1.7 million on the sale.

We had an equity method interest in Stratos with rights to a

majority of all distributions in respect of Stratos. In the fourth

quarter of 2022, we had a triggering event to test our investment

in Stratos for impairment. We estimated the fair value of our

equity interest in Stratos based primarily on a discounted cash

flow valuation model. The discounted cash flow valuation model

used inputs including management’s projections of future Stratos

cash flows and a discount rate of 23.0%. The estimated fair value

of our equity investment in Stratos was $61.7 million as of the

date of our impairment evaluation, which was $25.3 million lower

than our prior carrying value. We concluded that the decline in fair

value was other than temporary and as result incurred a $25.3

million impairment charge. During 2023, we obtained 100% of the

interests in Stratos and now account for Stratos as a wholly

owned subsidiary. Refer to Note 4, Business Acquisitions in our

consolidated financial statements included in this Annual Report

on Form 10-K.

Goodwill

At November 30, 2024, goodwill recorded in our Consolidated

Statements of Financial Condition is $1.83 billion (2.8% of total

assets). The nature and accounting for goodwill is discussed in

Note 2, Summary of Significant Accounting Policies, and Note 13,

Goodwill and Intangible Assets, in our consolidated financial

statements included in this Annual Report on Form 10-K.

Goodwill must be allocated to reporting units and tested for

impairment at least annually, or when circumstances or events

make it more likely than not that an impairment occurred.

Goodwill is tested by comparing the estimated fair value of each

reporting unit with its carrying value. Our annual goodwill

impairment testing date for a substantial portion of our reporting

units is August 1 and November 30 for other identified reporting

units. The results of our annual tests did not indicate any

goodwill impairment.

We use allocated tangible equity plus allocated goodwill and

intangible assets for the carrying amount of each reporting unit.

The amount of tangible equity allocated to a reporting unit is

based on our cash capital model deployed in managing our

businesses, which seeks to approximate the capital a business

would require if it were operating independently. For further

information on our Cash Capital Policy, refer to the Liquidity,

Financial Condition and Capital Resources section herein.

Intangible assets are allocated to a reporting unit based on either

specifically identifying a particular intangible asset as pertaining

to a reporting unit or, if shared among reporting units, based on

an assessment of the reporting unit’s benefit from the intangible

asset in order to generate results.

Estimating the fair value of a reporting unit requires management

judgment and often involves the use of estimates and

assumptions that could have a significant effect on whether or

not an impairment charge is recorded and the magnitude of such

a charge. Estimated fair values for our reporting units utilize

market valuation methods that incorporate price-to-earnings and

price-to-book multiples of comparable public companies and/or

projected cash flows. Under the market valuation approach, the

key assumptions are the selected multiples and our internally

developed projections of future profitability, growth and return on

equity for each reporting unit. The weight assigned to the

multiples requires judgment in qualitatively and quantitatively

evaluating the size, profitability and the nature of the business

activities of the reporting units as compared to the comparable

publicly-traded companies. The valuation methodology for our

reporting units is sensitive to management’s forecasts of future

profitability, which are a significant component of the valuation

and come with a level of uncertainty regarding trading volumes

and capital market transaction levels. In addition, as the fair

values determined under the market valuation approach

represent a noncontrolling interest, we apply a control premium

to arrive at the estimate fair value of each reporting unit on a

controlling basis.

Carrying values of goodwill by reporting unit:


	November 30,
$ in millions	2024	2023
Investment banking ...................................................................	$700.7	$700.2
Equities and wealth management ...........................................	255.4	255.3
Fixed income ..............................................................................	576.9	576.6
Asset management ...................................................................	143.0	143.0
Other investments .....................................................................	151.9	172.8
Total.............................................................................................	$1,827.9	$1,847.9

Refer to Note 4, Business Acquisitions and Note 13, Goodwill and

Intangible Assets in our consolidated financial statements

included in this Annual Report on Form 10-K for further details on

goodwill.


25		Jefferies Financial Group Inc.

Liquidity, Financial Condition and Capital Resources

Our CFO and Global Treasurer are responsible for developing and

implementing our liquidity, funding and capital management

strategies. These policies are determined by the nature and

needs of our day-to-day business operations, business

opportunities, regulatory obligations, and liquidity requirements.

Our actual levels of capital, total assets and financial leverage are

a function of a number of factors, including asset composition,

business initiatives and opportunities, regulatory requirements

and cost and availability of both long term and short-term

funding. We have historically maintained a balance sheet

consisting of a large portion of our total assets in cash and liquid

marketable securities. The liquid nature of these assets provides

us with flexibility in financing and managing our business.

We also own a legacy portfolio of businesses and investments

that are reflected as consolidated subsidiaries, equity

investments or securities. Over the most recent years, we

completed several critical steps to substantially liquidate our

legacy Other investments portfolio of businesses, including the

spin-off of Vitesse Energy in January 2023 and the sales of

Golden Queen in November 2023, Foursight in April 2024 and the

wholesale operations of OpNet in August 2024.

In keeping with our strategy of returning excess liquidity to

shareholders, during the year ended November 30, 2024, we

returned an aggregate of $347.3 million to shareholders primarily

in the form of $303.0 million in cash dividends and the

repurchases of $1.1 million common shares for a total of $44.3

million at a weighted average price of $40.72 per share in

connection with the net share settlement for tax purposes of

stock awards under our equity compensation plans.

We maintain modest leverage to support our investment grade

ratings. The growth of our balance sheet is supported by our

equity and we have quantitative metrics in place to monitor

leverage and double leverage. Our capital plan is robust, in order

to sustain our operating model through stressed conditions. We

maintain adequate financial resources to support business

activities in both normal and stressed market conditions,

including a buffer in excess of our regulatory, or other internal or

external, requirements. Our access to funding and liquidity is

stable and efficient to ensure that there is sufficient liquidity to

meet our financial obligations in normal and stressed market

conditions.

Our Balance Sheet

A business unit level balance sheet and cash capital analysis are

prepared and reviewed with senior management on a weekly

basis. As a part of this balance sheet review process, capital is

allocated to all assets and gross balance sheet limits are

adjusted, as necessary. This process ensures that the allocation

of capital and costs of capital are incorporated into business

decisions. The goals of this process are to protect the firm’s

platform, enable our businesses to remain competitive, maintain

the ability to manage capital proactively and hold businesses

accountable for both balance sheet and capital usage.

We actively monitor and evaluate our financial condition and the

composition of our assets and liabilities. We continually monitor

our overall securities inventory, including the inventory turnover

rate, which confirms the liquidity of our overall assets. A

significant portion of our financial instruments are valued on a

daily basis and we monitor and employ balance sheet limits for

our various businesses.


	November 30,
$ in millions	2024	2023	% Change
Total assets................................................	$64,360.3	$57,905.2	11.1%
Cash and cash equivalents ......................	12,153.4	8,526.4	42.5
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations ....................	1,132.6	1,414.6	(19.9)
Financial instruments owned ..................	24,138.3	21,747.5	11.0
Financial instruments sold, not yet purchased ..............................................	11,007.3	11,251.2	(2.2)
Total Level 3 assets ..................................	734.2	680.6	7.9
Securities borrowed ..................................	$7,213.4	$7,192.1	0.3%
Securities purchased under agreements to resell ............................	6,179.7	5,950.5	3.9
Total securities borrowed and securities purchased under agreements to resell ...........................	$13,393.1	$13,142.6	1.9%
Securities loaned .......................................	$2,540.9	$1,840.5	38.1%
Securities sold under agreements to repurchase ............................................	12,337.9	10,920.6	13.0
Total securities loaned and securities sold under agreements to repurchase ............................................	$14,878.8	$12,761.1	16.6%

Total assets at November 30, 2024 and 2023 were $64.36 billion

and $57.91 billion, respectively, an increase of 11.1%. During

2024, average total assets were approximately 10.3% higher than

total assets at November 30, 2024.

Our total Financial instruments owned inventory was $24.14

billion and $21.75 billion at November 30, 2024 and 2023,

respectively. During the year ended November 30, 2024, our total

Financial instruments owned increased primarily due to the

increase in corporate equity securities. Financial instruments

sold, not yet purchased inventory was $11.01 billion at

November 30, 2024, a decrease of 2.2% from $11.25 billion at

November 30, 2023, with the decrease primarily driven by

decreases in sovereign obligations and derivative contracts,

partially offset by increases in corporate equity and debt

securities. Our overall net inventory position was $13.13 billion

and $10.50 billion at November 30, 2024 and 2023, respectively,

with the increase primarily due to an increases in corporate

equity securities.

Level 3 assets:


$ in millions	November 30, 2024	Percent	November 30, 2023	Percent
Investment Banking ............	$146.7	20.0%	$129.3	19.0%
Equities and Fixed Income .	312.2	42.5	337.2	49.5
Asset Management (1) .......	256.2	34.9	198.4	29.2
Other ......................................	19.1	2.6	$15.7	2.3
Total ......................................	$734.2	100.0%	$680.6	100.0%

(1)At November 30, 2024 and 2023, $218.3 million and $121.4 million,

respectively, are attributed to Other investments within our Asset Management

reportable segment.

Securities financing assets and liabilities include financing for

our financial instruments trading activity, matched book

transactions and mortgage finance transactions. Matched book

transactions accommodate customers, as well as obtain

securities for the settlement and financing of inventory positions.

Our average month end balance of total reverse repos and stock

borrows during 2024 were 34.4% higher than the November 30,

2024 balance. Our average month end balance of total repos and

stock loans during 2024 were 23.8% higher than the

November 30, 2024 balance.


November 2024 Form 10-K		26

Select information related to repurchase agreements:


	Year Ended
$ in millions ......................................................................	2024	2023
Securities Purchased Under Agreements to Resell:
Year end ...........................................................................	$6,180	$5,951
Month end average .........................................................	8,910	7,681
Maximum month end .....................................................	10,978	10,767
Securities Sold Under Agreements to Repurchase: .
Year end ...........................................................................	$12,338	$10,921
Month end average .........................................................	15,197	13,556
Maximum month end .....................................................	20,971	17,981

Fluctuations in the balance of our repurchase agreements from

period to period and intraperiod are dependent on business

activity in those periods. Additionally, the fluctuations in the

balances of our securities purchased under agreements to resell

are influenced in any given period by our clients’ balances and

our clients’ desires to execute collateralized financing

arrangements via the repurchase market or via other financing

products. Average balances and period end balances will

fluctuate based on market and liquidity conditions and we

consider the fluctuations intraperiod to be typical for the

repurchase market.

Leverage Ratios:


	November 30,
$ in millions	2024	2023
Total assets ..................................................................	$64,360	$57,905
Total equity ...................................................................	$10,225	$9,802
Total shareholders’ equity ..........................................	$10,157	$9,710
Deduct: Goodwill and intangible assets ....................	(2,054)	(2,045)
Tangible shareholders’ equity ...................................	$8,103	$7,665
Leverage ratio (1) .........................................................	6.3	5.9
Tangible gross leverage ratio (2) ...............................	7.7	7.3

(1)Leverage ratio equals total assets divided by total equity.

(2)Tangible gross leverage ratio (a non-GAAP financial measure) equals total

assets less goodwill and identifiable intangible assets divided by tangible

shareholders’ equity. The tangible gross leverage ratio is used by rating

agencies in assessing our leverage ratio.

Liquidity Management

The key objectives of the liquidity management framework are to

support the successful execution of our business strategies

while ensuring sufficient liquidity through the business cycle and

during periods of financial and idiosyncratic distress. Our liquidity

management policies are designed to mitigate the potential risk

that we may be unable to access adequate financing to service

our financial obligations without material franchise or business

impact.

The principal elements of our liquidity management framework

are our Cash Capital Policy, our assessment of Modeled Liquidity

Outflow (“MLO”) and our Contingency Funding Plan (“CFP”).

Liquidity Management Framework. Our Liquidity Management

Framework is based on a model of a potential liquidity

contraction over a one-year time period. This incorporates

potential cash outflows during a market or our idiosyncratic

liquidity stress event, including, but not limited to, the following:

•Repayment of all unsecured debt maturing within one year and

no incremental unsecured debt issuance;

•Maturity rolloff of outstanding letters of credit with no further

issuance and replacement with cash collateral;

•Higher margin requirements than currently exist on assets on

securities financing activity, including repurchase agreements

and other secured funding including central counterparty

clearinghouses;

•Liquidity outflows related to possible credit downgrade;

•Lower availability of secured funding;

•Client cash withdrawals;

•The anticipated funding of outstanding investment and loan

commitments; and

•Certain accrued expenses and other liabilities and fixed costs.

Cash Capital Policy. We maintain a cash capital model that

measures long-term funding sources against requirements.

Sources of cash capital include our equity, mezzanine equity and

the noncurrent portion of long-term borrowings. Uses of cash

capital include the following:

•Illiquid assets such as equipment, goodwill, net intangible

assets, exchange memberships, deferred tax assets and

certain investments;

•A portion of securities inventory and other assets not expected

to be financed on a secured basis in a credit stressed

environment (i.e., margin requirements); and

•Drawdowns of unfunded commitments.

To ensure that we do not need to liquidate inventory in the event

of a funding stress, we seek to maintain surplus cash capital. Our

total long-term capital of $21.66 billion at November 30, 2024

exceeded our cash capital requirements.

MLO. Our businesses are diverse, and our liquidity needs are

determined by many factors, including market movements,

collateral requirements and client commitments, all of which can

change dramatically in a difficult funding environment. During a

liquidity stress, credit-sensitive funding, including unsecured debt

and some types of secured financing agreements, may be

unavailable, and the terms (e.g., interest rates, collateral

provisions and tenor) or availability of other types of secured

financing may change. As a result of our policy to ensure we have

sufficient funds to cover what we estimate may be needed in a

liquidity stress, we hold more cash and unencumbered securities

and have greater long-term debt balances than our businesses

would otherwise require. As part of this estimation process, we

calculate an MLO that could be experienced in a liquidity stress.

MLO is based on a scenario that includes both a market-wide

stress and firm-specific stress, characterized by some or all of

the following elements:

•Global recession, default by a medium-sized sovereign, low

consumer and corporate confidence, and general financial

instability.

•Severely challenged market environment with material declines

in equity markets and widening of credit spreads.

•Damaging follow-on impacts to financial institutions leading to

the failure of a large bank.

•A firm-specific crisis potentially triggered by material losses,

reputational damage, litigation, executive departure, and/or a

ratings downgrade.

The following are the critical modeling parameters of the MLO:

•Liquidity needs over a 30-day scenario.


27		Jefferies Financial Group Inc.

•A two-notch downgrade of our long-term senior unsecured

credit ratings.

•No support from government funding facilities.

•A combination of contractual outflows, such as upcoming

maturities of unsecured debt, and contingent outflows (e.g.,

actions though not contractually required, we may deem

necessary in a crisis). We assume that most contingent

outflows will occur within the initial days and weeks of a

stress.

•No diversification benefit across liquidity risks. We assume

that liquidity risks are additive.

The calculation of our MLO under the above stresses and

modeling parameters considers the following potential

contractual and contingent cash and collateral outflows:

•All upcoming maturities of unsecured long-term debt,

promissory notes and other unsecured funding products

assuming we will be unable to issue new unsecured debt or

rollover any maturing debt.

•Repurchases of our outstanding long-term debt in the ordinary

course of business as a market maker.

•A portion of upcoming contractual maturities of secured

funding activity due to either the inability to refinance or the

ability to refinance only at wider haircuts (i.e., on terms which

require us to post additional collateral). Our assumptions

reflect, among other factors, the quality of the underlying

collateral and counterparty concentration.

•Collateral postings to counterparties due to adverse changes in

the value of our over-the-counter (“OTC”) derivatives and other

outflows due to trade terminations, collateral substitutions,

collateral disputes, collateral calls or termination payments

required by a two-notch downgrade in our credit ratings.

•Variation margin postings required due to adverse changes in

the value of our outstanding exchange-traded derivatives and

any increase in initial margin and guarantee fund requirements

by derivative clearing houses.

•Liquidity outflows associated with our prime services business,

including withdrawals of customer credit balances, and a

reduction in customer short positions.

•Liquidity outflows to clearing banks to ensure timely

settlements of cash and securities transactions.

•Draws on our unfunded commitments considering, among

other things, the type of commitment and counterparty.

•Other upcoming large cash outflows, such as employee

compensation, tax and dividend payments, with no expectation

of future dividends from any subsidiaries.

Based on the sources and uses of liquidity calculated under the

MLO scenarios, we determine, based on a calculated surplus or

deficit, additional long-term funding that may be needed versus

funding through the repurchase financing market and consider

any adjustments that may be necessary to our inventory balances

and cash holdings. At November 30, 2024, we had sufficient

excess liquidity to meet all contingent cash outflows detailed in

the MLO for at least 30 days without balance sheet reduction. We

regularly refine our model to reflect changes in market or

economic conditions and our business mix.

CFP. Our CFP ensures the ability to access adequate liquid

financial resources to meet liquidity shortfalls that may arise in

emergency situations. The CFP triggers the following actions:

•Sets out the governance for managing liquidity during a

liquidity crisis;

•Identifies key liquidity and capital early warning indicators that

will help guide the response to the liquidity crisis;

•Identifies the actions and escalation procedures should we

experience a liquidity crisis including coordination amongst

senior management and the Board of Directors;

•Sets out the sources of funding available during a liquidity

crisis;

•Sets out the communication plan during a liquidity crisis for

key external stakeholders including regulators, relationship

banks, rating agencies and funding counterparties; and

•Sets out an action plan to source additional funding.

Sources of Liquidity

Financial instruments that are cash and cash equivalents or are

deemed by management to be generally readily convertible into

cash, marginable or accessible for liquidity purposes within a

relatively short period of time:


$ in thousands	November 30, 2024	Average Balance Quarter Ended November 30, 2024 (1)	November 30, 2023
Cash and cash equivalents:
Cash in banks .............................................	$3,925,535	$5,070,837	$2,606,673
Money market investments (2) ...............	8,227,879	5,089,187	5,919,690
Total cash and cash equivalents ............	12,153,414	10,160,024	8,526,363
Other sources of liquidity:
Debt securities owned and securities purchased under agreements to resell (3) ................................................	1,287,564	1,415,863	1,472,524
Other (4) ......................................................	573,042	717,178	456,341
Total other sources ...................................	1,860,606	2,133,041	1,928,865
Total cash and cash equivalents and other liquidity sources .......................	$14,014,020	$12,293,065	$10,455,228
Total cash and cash equivalents and other liquidity sources as % of Total assets ....................................................	21.8%		18.1%
Total cash and cash equivalents and other liquidity sources as % of Total assets less goodwill and intangible assets ....................................................	22.5%		18.7%

(1)Average balances are calculated based on weekly balances.

(2)At November 30, 2024 and 2023, $8.21 billion and $5.90 billion, respectively,

was invested in U.S. government money funds that invest primarily in cash,

securities issued by the U.S. government and U.S. government-sponsored

entities, and repurchase agreements that are fully collateralized by cash or

government securities. The remaining balances at November 30, 2024 and

2023 are primarily invested in AAA-rated prime money funds. The average

balance of U.S. government money funds for the quarter ended November 30,

2024 was $5.07 billion.

(3)Consists of high-quality sovereign government securities and reverse

repurchase agreements collateralized by U.S. government securities and other

high quality sovereign government securities; deposits with a central bank

within the European Economic Area, United Kingdom, Canada, Australia,

Japan, Switzerland or the U.S.; and securities issued by a designated

multilateral development bank and reverse repurchase agreements with

underlying collateral composed of these securities.

(4)Other includes unencumbered inventory representing an estimate of the

amount of additional secured financing that could be reasonably expected to

be obtained from our Financial instruments owned that are currently not

pledged after considering reasonable financing haircuts.


November 2024 Form 10-K		28

In addition to the cash balances and liquidity pool presented

above, the majority of financial instruments (both long and short)

in our trading accounts are actively traded and readily

marketable. At November 30, 2024, we had the ability to readily

obtain repurchase financing for 77.0% of our inventory at haircuts

of 10% or less, which reflects the liquidity of our inventory. In

addition, as a matter of our policy, all of these assets have

internal capital assessed, which is in addition to the funding

haircuts provided in the securities finance markets. Additionally,

certain of our Financial instruments owned primarily consisting

of loans and investments are predominantly funded by long term

capital. Under our cash capital policy, we model capital allocation

levels that are more stringent than the haircuts used in the

market for secured funding; and we maintain surplus capital at

these more stringent levels. We continually assess the liquidity of

our inventory based on the level at which we could obtain

financing in the marketplace for a given asset. Assets are

considered to be liquid if financing can be obtained in the

repurchase market or the securities lending market at collateral

haircut levels of 10% or less.

Financial instruments by asset class that we consider to be of a

liquid nature and the amount of such assets that have not been

pledged as collateral:


	November 30,
	2024		2023
$ in thousands	Liquid Financial Instruments	Unencumbered Liquid Financial Instruments (2)	Liquid Financial Instruments	Unencumbered Liquid Financial Instruments (2)
Corporate equity securities .............	$5,280,920	$781,490	$4,062,977	$652,131
Corporate debt securities .............	5,179,229	339,500	4,785,701	171,457
U.S. government, agency and municipal securities .............	4,061,773	75,911	3,852,232	111,423
Other sovereign obligations ..........	1,361,762	1,044,630	1,562,346	1,120,074
Agency mortgage- backed securities (1) .......	2,695,282	—	3,220,918	—
Loans and other receivables ..........	978	—	210,373	—
Total ...........................	$18,579,944	$2,241,531	$17,694,547	$2,055,085

(1)Consists solely of agency mortgage-backed securities issued by the Federal

Home Loan Mortgage Corporation (“Freddie Mac”), the Federal National

Mortgage Association (“Fannie Mae”) and the Government National Mortgage

Association (“Ginnie Mae”).

(2)Unencumbered liquid balances represent assets that can be sold or used as

collateral for a loan but have not been.

In addition to being able to be readily financed at reasonable

haircut levels, we estimate that each of the individual securities

within each asset class above could be sold into the market and

converted into cash within three business days under normal

market conditions, assuming that the entire portfolio of a given

asset class was not simultaneously liquidated. There are no

restrictions on the unencumbered liquid securities, nor have they

been pledged as collateral.

Sources of Funding and Capital Resources

Our assets are funded by equity capital, senior debt, securities

loaned, securities sold under agreements to repurchase,

customer free credit balances, bank loans and other payables.

Secured Financing

We rely principally on readily available secured funding to finance

our inventory of financial instruments owned and financial

instruments sold. Our ability to support increases in total assets

is largely a function of our ability to obtain short- and

intermediate term secured funding, primarily through securities

financing transactions. We finance a portion of our long inventory

and cover some of our short inventory by pledging and borrowing

securities in the form of repurchase or reverse repurchase

agreements (collectively “repos”), respectively. During 2024, an

average of approximately 61.0% of our cash and noncash

repurchase financing activities used collateral that was

considered eligible collateral by central clearing corporations.

Central clearing corporations are situated between participating

members who borrow cash and lend securities (or vice versa);

accordingly, repo participants contract with the central clearing

corporation and not one another individually. Therefore,

counterparty credit risk is borne by the central clearing

corporation which mitigates the risk through initial margin

demands and variation margin calls from repo participants. The

comparatively large proportion of our total repo activity that is

eligible for central clearing reflects the high quality and liquid

composition of the inventory we carry in our trading books. For

those asset classes not eligible for central clearing house

financing, we seek to execute our bi-lateral financings on an

extended term basis and the tenor of our repurchase and reverse

repurchase agreements generally exceeds the expected holding

period of the assets we are financing. The weighted average

maturity of cash and noncash repurchase agreements for non-

clearing corporation eligible funded inventory is approximately

six months at November 30, 2024.

Our ability to finance our inventory via central clearinghouses and

bi-lateral arrangements is augmented by our ability to draw bank

loans on an uncommitted basis under our various banking

arrangements. At November 30, 2024, short-term borrowings,

which must be repaid within one year or less include bank loans,

overdrafts and borrowings under revolving credit facilities.

Letters of credit are used in the normal course of business

mostly to satisfy various collateral requirements in favor of

exchanges in lieu of depositing cash or securities. Average daily

short-term borrowings outstanding were $1.25 billion and $787.9

million for 2024 and 2023, respectively.

At November 30, 2024 and 2023, our borrowings under bank

loans in Short-term borrowings were $414.5 million and

$937.1 million, respectively. Our borrowings include credit

facilities that contain certain covenants that, among other things,

require us to maintain a specified level of tangible net worth,

require a minimum regulatory net capital requirement for our U.S.

broker-dealer, Jefferies LLC, and impose certain restrictions on

the future indebtedness of certain of our subsidiaries that are

borrowers. Interest is based on rates at spreads over the federal

funds rate or other adjusted rates, as defined in the various credit

agreements, or at a rate as agreed between the bank and us in

reference to the bank’s cost of funding. At November 30, 2024,

we were in compliance with all covenants under these credit

facilities.

In addition to the above financing arrangements, we issue notes

backed by eligible collateral under master repurchase

agreements, which provides an additional financing source for

our inventory (our “repurchase agreement financing program”).

The notes issued under the program are presented within Other

secured financings. At November 30, 2024, the outstanding notes

totaled $2.11 billion, bear interest at a spread over the Secured

Overnight Funding Rate (“SOFR”) or the Euro Short-Term Rate

(“ESTER”) and mature from December 2024 to October 2026.

For additional details on our repurchase agreement financing

program, refer to Note 10, Variable Interest Entities in our

consolidated financial statements included in this Annual Report

on Form 10-K.


29		Jefferies Financial Group Inc.

Total Long-Term Capital

At November 30, 2024 and 2023, we had total long-term capital

of $21.66 billion and $17.70 billion, respectively, resulting in a

long-term debt to equity capital ratio of 1.12:1 and 0.81:1,

respectively. Refer to “Equity Capital” herein for further

information on our change in total equity.


	November 30,
$ in thousands	2024	2023
Unsecured Long-Term Debt (1) ..................................	$11,430,610	$7,902,079
Total Mezzanine Equity ...............................................	406	406
Total Equity ...................................................................	10,224,987	9,802,135
Total Long-Term Capital ............................................	$21,656,003	$17,704,620

(1)The amounts at November 30, 2024 and 2023 exclude our secured long-term

debt. The amount at November 30, 2023 excludes $544.2 million of our 1%

Euro Medium Term Notes as the note fully matured on July 19, 2024. The

amount at November 30, 2024 excludes $8.5 million of our 5.500% Callable

Note as the note matures on February 22, 2025, $5.4 million of our 6.000%

Callable Note as the note matures on June 16, 2025, $6.2 million of our

4.500% Callable Note as the note matures on July 22, 2025, and $500.0 million

of our 5.100% Callable Note as the note matures on September 15, 2025. The

amounts at November 30, 2024 and 2023 exclude $157.6 million and $51.0

million, respectively, of structured notes as the senior notes mature within one

year.

Long-Term Debt

During 2024, long-term debt increased by $3.83 billion to $13.53

billion at November 30, 2024, as presented in our Consolidated

Statements of Financial Condition. This increase is primarily due

to proceeds of $3.98 billion from the issuances of unsecured

senior notes, $487.0 million from net issuances of structured

notes, $254.8 million from increased subsidiaries borrowings,

and valuation losses on structured notes of $175.7 million. These

increases were partially offset by a $350.0 million paydown of a

revolving credit facility and repayments of $720.5 million on our

unsecured senior notes.

At November 30, 2024, our unsecured long-term debt has a

weighted average maturity of approximately 7.5 years.

At November 30, 2024 and 2023 our borrowings under several

credit facilities classified within Long-term debt in our

Consolidated Statements of Financial Condition amounted to

$775.3 million and $735.2 million, respectively. Interest on these

credit facilities is based on an adjusted SOFR plus a spread or

other adjusted rates, as defined in the various credit agreements.

The credit facility agreements contain certain covenants that,

among other things, require us to maintain specified levels of

tangible net worth and liquidity amounts, certain credit and rating

levels and impose certain restrictions on future indebtedness of

and require specified levels of regulated capital and cash

reserves for certain of our subsidiaries. At November 30, 2024,

we were in compliance with all covenants under theses credit

facilities.

For further information, refer to Note 18, Borrowings, in our

consolidated financial statements included in this Annual Report

on Form 10-K.

Our long-term debt ratings at November 30, 2024 are as follows:


	Rating	Outlook
Moody’s Investors Service .........................................	Baa2	Stable
Standard & Poor’s ........................................................	BBB	Stable
Fitch Ratings .................................................................	BBB+	Stable


	Jefferies LLC		Jefferies International Limited		Jefferies GmbH
	Rating	Outlook	Rating	Outlook	Rating	Outlook
Moody’s Investors Service ..........	Baa1	Stable	Baa1	Stable	Baa1	Stable
Standard & Poor’s ............	BBB+	Stable	BBB+	Stable	BBB+	Stable

Access to external financing to finance our day-to-day operations,

as well as the cost of that financing, is dependent upon various

factors, including our debt ratings. Our current debt ratings are

dependent upon many factors, including industry dynamics,

operating and economic environment, operating results,

operating margins, earnings trend and volatility, balance sheet

composition, liquidity and liquidity management, our capital

structure, our overall risk management, business diversification

and our market share and competitive position in the markets in

which we operate. Deterioration in any of these factors could

impact our credit ratings. While certain aspects of a credit rating

downgrade are quantifiable pursuant to contractual provisions,

the impact on our business and trading results in future periods

is inherently uncertain and depends on a number of factors,

including the magnitude of the downgrade, the behavior of

individual clients and future mitigating action taken by us.

In connection with certain over-the-counter derivative contract

arrangements and certain other trading arrangements, we may be

required to provide additional collateral to counterparties,

exchanges and clearing organizations in the event of a credit

rating downgrade. At November 30, 2024, the amount of

additional collateral that could be called by counterparties,

exchanges and clearing organizations under the terms of such

agreements in the event of a downgrade of our long-term credit

rating below investment grade was $120.1 million. For certain

foreign clearing organizations, credit rating is only one of several

factors employed in determining collateral that could be called.

The above represents management’s best estimate for additional

collateral to be called in the event of a credit rating downgrade.

The impact of additional collateral requirements is considered in

our CFP and calculation of MLO, as described above.

Equity Capital

Common Stock

At November 30, 2024 and 2023, we had 565,000,000 authorized

shares of voting common stock with a par value of $1.00 per

share and had 205,504,272 and 210,626,642 common shares

outstanding, respectively. At November 30, 2024, we had

15,768,229 share-based awards that do not require the holder to

pay any exercise price and 5,064,740 stock options that require

the holder to pay a weighted average exercise price of $22.69 per

share.

The Board of Directors has authorized the repurchase of

common stock up to $250.0 million under a share repurchase

program. We did not purchase any shares under our share

repurchase program during 2024. Treasury stock repurchases

during 2024 represent repurchases of common stock for net-

share withholding under our equity compensation plan.

In February 2023, our mandatorily redeemable convertible

preferred shares were converted into 4,654,362 common shares.


November 2024 Form 10-K		30

Dividends


Year Ended November 30, 2024
Declaration Date	Record Date	Payment Date	Per Common Share Amount
January 8, 2024	February 16, 2024	February 27, 2024	$0.30
March 27, 2024	May 20, 2024	May 30, 2024	$0.30
June 26, 2024	August 19, 2024	August 30, 2024	$0.35
September 25, 2024	November 18, 2024	November 27, 2024	$0.35

Year Ended November 30, 2023
Declaration Date	Record Date	Payment Date	Per Common Share Amount
January 9, 2023	February 13, 2023	February 24, 2023	$0.30
March 28, 2023	May 15, 2023	May 26, 2023	$0.30
June 27, 2023	August 14, 2023	August 25, 2023	$0.30
September 27, 2023	November 13, 2023	November 28, 2023	$0.30

On January 8, 2025, the Board of Directors increased our

quarterly dividend from $0.35 to $0.40 per common share to be

paid on February 27, 2025 to common shareholders of record at

February 14, 2025.

The payment of dividends is subject to the discretion of our

Board of Directors and depends upon general business

conditions and other factors that our Board of Directors may

deem to be relevant.

Non-Voting Common Stock

On June 28, 2023, shareholders approved an Amended and

Restated Certificate of Incorporation, which authorized the

issuance of 35,000,000 shares of non-voting common stock with

a par value of $1.00 per share (the “Non-Voting Common

Shares”). The Non-Voting Common Shares are entitled to share

equally, on a per share basis, with the voting common stock, in

dividends and distributions. Upon the effectiveness of the

Amended and Restated Certificate of Corporation on June 30,

2023, the number of authorized shares of common stock

remains at 600,000,000 shares, composed of 565,000,000 shares

of voting common stock and 35,000,000 shares of Non-Voting

Common Shares.

Series B Preferred Stock

On April 27, 2023, we established Series B Non-Voting

Convertible Preferred Shares with a par value of $1.00 per share

(“Series B Preferred Stock”) and designated 70,000 shares as

Series B Preferred Stock. The Series B Preferred Stock has a

liquidation preference of $17,500 per share and rank senior to our

voting common stock upon dissolution, liquidation or winding up

of Jefferies Financial Group Inc. Each share of Series B Preferred

Stock is automatically convertible into 500 shares of non-voting

common stock, subject to certain anti-dilution adjustments, three

years after issuance. The Series B Preferred Stock participates in

cash dividends and distributions alongside our voting common

stock on an as-converted basis.

Additionally, on April 27, 2023, we entered into an Exchange

Agreement with Sumitomo Mitsui Banking Corporation (“SMBC”),

which entitles SMBC to exchange shares of our voting common

stock for shares of the Series B Preferred Stock at a rate of 500

shares of voting common stock for one share of Series B

Preferred Stock. The Exchange Agreement is limited to 55,125

shares of Preferred Stock and SMBC is required to pay $1.50 per

share of voting common stock so exchanged. During the year-

ended November 30, 2023, SMBC exchanged 21.0 million shares

of voting common stock for 42,000 shares of Series B Preferred

Stock and we received cash of $31.5 million in connection with

the exchange. As a result of the exchange, our equity attributed

to our voting common stock decreased by $21.0 million, our

equity attributed to the Series B Preferred Stock increased by

$42,000 and additional paid-in capital increased by $52.4 million.

On June 20, 2024, SMBC exchanged an additional 6.6 million

shares of voting common stock for 13,125 shares of Series B

Preferred Stock and we received $9.8 million from SMBC in

connection with the exchange. Following this exchange, SMBC

increased its ownership to 11.8% of our common stock on an as-

converted basis and 10.9% on a fully-diluted, as-converted basis.

As a result, the CEO of Sumitomo Mitsui Financial Group, Inc.

was elected and now serves on our Board of Directors. On

September 19, 2024, SMBC purchased 9.2 million shares of our

common stock. At November 30, 2024, SMBC owns

approximately 15.8% of our common stock on an as-converted

basis and 14.5% on a fully-diluted, as-converted basis. Refer to

Note 24, Related Party Transactions for further information

regarding transactions with SMBC.

During the year ended November 30, 2024 and 2023, we paid

cash dividends of $31.9 million and $12.6 million, respectively,

with respect to the Series B Preferred Stock.

Net Capital

Jefferies LLC is a broker-dealer registered with the SEC and a

member firm of the Financial Industry Regulatory Authority

(“FINRA”) and is subject to the SEC Uniform Net Capital Rule

(“Rule 15c3-1”), which requires the maintenance of minimum net

capital, and has elected to calculate minimum capital

requirements using the alternative method permitted by Rule

15c3-1 in calculating net capital. Jefferies LLC, as a dually-

registered U.S. broker-dealer and futures commission merchant

(“FCM”), is also subject to Regulation 1.17 of the Commodity

Futures Trading Commission (“CFTC”) under the Commodity

Exchange Act (“CEA”), which sets forth minimum financial

requirements. The minimum net capital requirement in

determining excess net capital for a dually registered U.S. broker-

dealer and FCM is equal to the greater of the requirement under

SEA Rule 15c3-1 or CFTC Regulation 1.17. Accordingly, FINRA is

the designated examining authority for Jefferies LLC and the

National Futures Association (“NFA”) is the designated self-

regulatory organization (“DSRO”) for Jefferies LLC as an FCM

Jefferies Financial Services, Inc. (“JFSI”) is registered with the

SEC as a Security-Based Swap Dealer (“SBS Dealer”) and an OTC

Derivatives Dealer (“OTCDD”) subject to the SEC’s SBS dealer

regulatory rules and the SEC’s net capital requirements pursuant

to Rule 18a-1. JFSI is also registered as a swap dealer with the

CFTC and is subject to the CFTC’s regulatory capital

requirements pursuant to the minimum financial requirements for

swap dealers under CFTC Regulation 23.101. Additionally, as a

registered member firm, JFSI is subject to the net capital

requirements of the NFA. Accordingly, the SEC is the designated

examining authority for JFSI in its capacity as an SBS Dealer and

OTCDD, while the NFA is the DSRO for JFSI, as a CFTC registered

swap dealer.

Certain non-U.S. subsidiaries are subject to capital adequacy

requirements as prescribed by the regulatory authorities in their

respective jurisdictions. This includes Jefferies International

Limited which is subject to the regulatory supervision and

requirements of the Financial Conduct Authority (“FCA”) in the

U.K. Jefferies International Limited’s’ own funds requirement

represents the highest of the permanent minimum capital

requirement, fixed overheads requirement and k-factor

requirements set out in the Investment Firms Prudential Regime

(“IFPR”) under the FCA’s MIFIDPRU sourcebook.


31		Jefferies Financial Group Inc.

At November 30, 2024, Jefferies LLC’s and JFSI’s net capital and

excess net capital were as follows (in thousands):


$ in thousands	Net Capital	Excess Net Capital
Jefferies LLC .................................................................	$2,018,251	$1,879,220
JFSI - SEC ......................................................................	348,588	325,511
JFSI - CFTC ...................................................................	348,588	322,144

In addition, the equivalent capital requirements for Jefferies

International Limited, on a consolidated basis, is a total capital of

$1,781.0 million and an excess capital of $1,054.0 million at

November 30, 2024.

At November 30, 2024, Jefferies LLC, JFSI and JIL are in

compliance with their applicable requirements.

The regulatory capital requirements referred to above may

restrict our ability to withdraw capital from our regulated

subsidiaries.

Customer Protection and Segregation Requirement

As a registered broker dealer that clears and carries customer

accounts, Jefferies LLC is subject to the customer protection

provisions under SEC Rule 15c3-3 and is required to compute a

reserve formula requirement for customer accounts and deposit

cash or qualified securities into a special reserve bank account

for the exclusive benefit of customers. At November 30, 2024,

Jefferies LLC had $142.6 million in cash and qualified U.S.

Government securities on deposit in special reserve bank

accounts for the exclusive benefit of customers.

As a registered broker dealer that clears and carries proprietary

accounts of brokers or dealers (commonly referred to as “PAB”),

Jefferies LLC is also required to compute a reserve requirement

for PABs pursuant to SEC Rule 15c3-3. At November 30, 2024,

Jefferies LLC had $581.9 million in cash and qualified U.S.

Government securities in special reserve bank accounts for the

exclusive benefit of PABs.

Other Developments

In February 2022, Russia invaded Ukraine. Following Russia’s

invasion, the U.S., the U.K., and the European Union governments,

among others, developed coordinated financial and economic

sanctions targeting Russia that, in various ways, constrain

transactions with numerous Russian entities, including major

Russian banks and individuals; transactions in Russian sovereign

debt; and investment, trade and financing to, from, or in Ukraine.

We do not have any operations in Russia or any clients with

significant Russian operations and we have minimal market risk

related to securities of companies either domiciled or operating

in Russia. We continue to closely monitor the status of global

sanctions and restrictions, trading conditions related to Russian

securities and the credit risk and nature of our counterparties.

In October 2023, Hamas attacked Israel. Our investments and

assets in our growing Israeli business could be negatively

affected by consequences from the geopolitical and military

conflict in the region. We continue to closely monitor the status

of global sanctions and restrictions arising from the conflict.

Off-Balance Sheet Arrangements

We have contractual commitments arising in the ordinary course

of business for securities loaned or purchased under agreements

to resell, repurchase agreements, future purchases and sales of

foreign currencies, securities transactions on a when-issued

basis, purchases and sales of corporate loans in the secondary

market and underwriting. Each of these financial instruments and

activities contains varying degrees of off-balance sheet risk

whereby the fair values of the securities underlying the financial

instruments may be in excess of, or less than, the contract

amount. The settlement of these transactions is not expected to

have a material effect upon our consolidated financial

statements.

In the normal course of business, we engage in other off balance-

sheet arrangements, including derivative contracts. Neither

derivatives’ notional amounts nor underlying instrument values

are reflected as assets or liabilities in our Consolidated

Statements of Financial Condition. Rather, the fair values of

derivative contracts are reported in our Consolidated Statements

of Financial Condition as Financial instruments owned or

Financial instruments sold, not yet purchased as applicable.

Derivative contracts are reflected net of cash paid or received

pursuant to credit support agreements and are reported on a net

by counterparty basis when a legal right of offset exists under an

enforceable master netting agreement. For additional information

about our accounting policies and our derivative activities, refer

to Note 2, Summary of Significant Accounting Policies, in our

consolidated financial statements included in Part II, Item 8 of

our Annual Report on Form 10-K for the year ended November 30,

2023 and Note 6, Fair Value Disclosures and Note 7, Derivative

Financial Instruments in our consolidated financial statements

included in this Annual Report on Form 10-K.

Contractual Obligations

Subsequent to November 30, 2024 and on or before January 31,

2025, we expect to make cash payments of $1.82 billion related

to year-end compensation awards for fiscal 2024. Refer to Note

15, Compensation Plans in our consolidated financial statements

included in this Annual Report on Form 10-K for further

information.

Risk Management

Overview

Risk is an inherent part of our business and activities. The extent

to which we properly and effectively identify, assess, monitor and

manage each of the various types of risk involved in our activities

is critical to our financial soundness, viability and profitability.

Accordingly, we have a comprehensive risk management

approach, with a formal governance structure and policies and

procedures outlining frameworks and processes to identify,

assess, monitor and manage risk. Principal risks involved in our

business activities include market, credit, liquidity and capital,

operational, model and strategic risk. Legal and compliance, new

business and reputational risk are also included within our

principal risks.

Risk management is a multifaceted process that requires

communication, judgment and knowledge of financial products

and markets. Our risk management process encompasses the

active involvement of executive and senior management, and

also many departments independent of the revenue-producing

business units, including Risk Management, Operations,

Information Technology, Compliance, Legal and Finance. Our risk

management policies, procedures and methodologies are flexible

in nature and are subject to ongoing review and modification.

In achieving our strategic business objectives, our risk appetite

incorporates keeping our clients’ interests as top priority and

ensuring we are in compliance with applicable laws, rules and

regulations, as well as adhering to the highest ethical standards.

We undertake prudent risk-taking that protects the capital base

and franchise, utilizing risk limits and tolerances that avoid

outsized risk-taking. We maintain a diversified business mix and

avoid significant concentrations to any sector, product,


November 2024 Form 10-K		32

geography or activity and set quantitative concentration limits to

manage this risk. We consider contagion, second order effects

and correlation in our risk assessment process and actively seek

out value opportunities of all sizes. We manage the risk of

opportunities larger than our approved risk levels through risk

sharing and risk distribution, sell-down and hedging as

appropriate. We have a limited appetite for illiquid assets and

complex derivative financial instruments. We maintain the asset

quality of our balance sheet through conducting trading activity in

liquid markets and generally ensure high turnover of our

inventory. We subject less liquid positions and derivative financial

instruments to particular scrutiny and use a wide variety of

specific metrics, limits and constraints to manage these risks.

We protect our reputation and franchise, as well as our standing

within the market. We operate a federated approach to risk

management and assign risk oversight responsibilities to a

number of functions with specific areas of focus.

For discussion of liquidity and capital risk management, refer to

the “Liquidity, Financial Condition and Capital Resources” section

herein.

Governance and Risk Management Structure

Our Board of Directors (“Board”) and Risk and Liquidity Oversight

Committee (“Committee”). Our Board and Committee play an

important role in reviewing our risk management process and

risk appetite. The Committee assists the Board in its oversight of:

(i) our enterprise risk management, (ii) our capital, liquidity and

funding guidelines and policies and (iii) the performance of our

Global Chief Risk Officer (“CRO”). Our CRO and Global Treasurer

meet with the Committee on no less than a quarterly basis to

present our risk profile and liquidity profile and to respond to

questions. Our Chief Information Officer also meets with the

Committee at least semi-annually to receive and review reports

related to any exposure to cybersecurity risk and our plans and

programs to mitigate and respond to cybersecurity risks.

Additionally, our risk management team continuously monitors

our various businesses, the level of risk the businesses are taking

and the efficacy of potential risk mitigation strategies and

presents this information to our senior management and the

Committee.

Our Board also fulfills its risk oversight role through the

operations of its various committees, including its Audit

Committee. The Audit Committee has responsibility for risk

oversight in connection with its review of our financial

statements, internal audit function and internal control over

financial reporting, as well as assisting the Board with our legal

and regulatory compliance and overseeing our Code of Business

Practice. The Audit Committee is also updated on risk controls at

each of its regularly scheduled meetings.

Internal Audit, which reports to the Audit Committee of the Board

and includes professionals with a broad range of audit and

industry experience, including risk management expertise, is

responsible for independently assessing and validating key

controls within our risk management framework.

We make extensive use of internal committees to govern risk

taking and ensure that business activities are properly identified,

assessed, monitored and managed. The Risk Management

Committee (“RMC”) and membership comprises our Chief

Executive Officer, President, CFO, CRO and Global Treasurer. Our

other risk related committees govern risk taking and ensure that

business activities are properly managed for their area of

oversight.

Risk Committees

•Risk Management Committee (RMC) - the principal committee

that governs our risk taking activities. The RMC meets weekly

to discuss our risk profile and discuss business or market

trends and their potential impact on the business. The RMC

approves our limits as a whole and across risk categories and

business lines, reviews limit breaches, approves risk policies

and stress testing methodologies and is supported by other

Committees including:

◦Credit Risk Committee - provides review and approval of

counterparties and credit limits.

◦Model Governance Committee - oversees all model risk

matters throughout the model life cycle, from model

identification and initiation, model development, model

validation/approval and model risk control.

◦Stress Testing Committee - provides review, approval and

oversees implementation of our stress testing framework

and methodologies.

•Operating Committee - brings together the managers of all

control areas and the business line chief operating officers,

whereby each department presents issues regarding current

and proposed business. This committee provides the key

forum for coordination and communication between the

control managers entirely focused on our activities as a whole.

•Asset / Liability Committee - seeks to ensure effective

management and control of the balance sheet in terms of risk

profile, adequacy of capital and liquidity resources and funding

profile and strategy. The committee is responsible for

developing, implementing and enforcing our liquidity, funding

and capital policies. This includes recommendations for

capital and balance sheet size, as well as the allocation of

capital to our businesses.

•Independent Price Verification Committee - establishes our

valuation policies and procedures and is responsible for

independently validating the fair value of our financial

instruments. The committee, which comprises stakeholders

represented by the CFO, Internal Audit, Risk Management and

Controllers, meets monthly to assess and approve the results

of our inventory price testing.

•New Business Committee - reviews new business, products and

activities and extensions of existing businesses, products and

activities that may introduce materially different or greater

risks than those of a business’ existing activities. The new

business approval process is a key control over new business

activity. The objectives are to notify all relevant functions of the

intention to introduce a new product, business or activity, to

share information between functions and to ensure there is a

thorough understanding of the proposal.

Risk Considerations

We apply a comprehensive framework of limits on a variety of

key metrics to constrain the risk profile of our business activities.

The size of the limits reflects our risk appetite for a certain

activity under normal business conditions. Key metrics included

in our risk management framework include inventory position

and exposure limits on a gross and net basis, scenario analysis

and stress tests, Value-at-Risk (“VaR”), sensitivities, exposure

concentrations, aged inventory, Level 3 assets, counterparty

exposure, leverage and cash capital.


33		Jefferies Financial Group Inc.

Market Risk

Market risk is defined as the risk of loss due to fluctuations in the

market value of financial assets and liabilities attributable to

changes in market variables.

Our market risk principally arises from interest rate risk, from

exposure to changes in the yield curve, the volatility of interest

rates, and credit spreads, and from equity price risks from

exposure to changes in prices and volatilities of individual

equities, equity baskets and equity indices. In addition,

commodity price risk results from exposure to the changes in

prices and volatilities of individual commodities, commodity

baskets and commodity indices, and foreign exchange risk

results from changes in foreign currency rates.

Market risk is present in our capital markets business through

market making, proprietary trading, underwriting and investing

activities and is present in our asset management business

through investments in separately managed accounts and direct

investments in funds. Given our involvement in a broad set of

financial products and markets, market risk exposures are

diversified and economic hedges are established as appropriate.

Market risk is monitored and managed through a set of key risk

metrics such as VaR, stress scenarios, risk sensitivities and

position exposures. Limits are set on the key risk metrics to

monitor and control the risk exposure ensuring that it is in line

with our risk appetite. Our risk appetite, including the market risk

limits, is periodically reviewed to reflect business strategy and

market environment. Material risk changes, top/emerging risks

and limit utilizations/breaches are highlighted through risk

reporting and escalated as necessary.

Trading is principally managed through front office trader

mandates, where each trader is provided a specific mandate in

line with our product registry. Mandates set out the activities,

currencies, countries and products that a desk is permitted to

trade in and set the limits applicable to a desk. Traders are

responsible for knowing their trading limits and trading in a

manner consistent with their mandate.

VaR

VaR is a statistical estimate of the potential loss from adverse

market movements over a specified time horizon within a

specified probability (confidence level). It provides a common

risk measure across financial instruments, markets and asset

classes. We estimate VaR using a model that simulates revenue

and loss distributions by applying historical market changes to

the current portfolio. We calculate a one-day VaR using a one-

year look-back period measured at a 95% confidence level.

As with all measures of VaR, our estimate has inherent

limitations due to the assumption that historical changes in

market conditions are representative of the future. Furthermore,

the VaR model measures the risk of a current static position over

a one-day horizon and might not capture the market risk over a

longer time horizon where moves may be more extreme.

Previous changes in market risk factors may not generate

accurate predictions of future market movements. While we

believe the assumptions and inputs in our risk model are

reasonable, we could incur losses greater than the reported VaR.

Consequently, this VaR estimate is only one of a number of tools

we use in our daily risk management activities.


	VaR at November 30, 2024	Daily Firmwide VaR
$ in millions		Daily VaR for 2024
Risk Categories		Average	High	Low
Interest Rates and Credit Spreads .............................	$4.30	$5.69	$8.25	$2.58
Equity Prices ........................	8.31	11.41	20.69	7.76
Currency Rates ....................	0.84	0.67	2.82	0.24
Commodity Prices ..............	0.41	0.44	1.38	0.15
Diversification Effect (1) ....	(2.19)	(5.08)	N/A	N/A
Firmwide VaR (2) ................	$11.67	$13.13	$18.70	$9.33


	VaR at November 30, 2023	Daily Firmwide VaR
$ in millions		Daily VaR for 2023
Risk Categories		Average	High	Low
Interest Rates and Credit Spreads .............................	$5.35	$7.66	$12.02	$4.31
Equity Prices ........................	8.76	10.39	16.19	6.53
Currency Rates ....................	1.29	0.55	2.26	0.04
Commodity Prices ..............	1.02	0.31	2.59	0.07
Diversification Effect (1) ....	(4.23)	(5.34)	N/A	N/A
Firmwide VaR (2) ................	$12.19	$13.57	$19.93	$9.12

(1)The diversification effect is not applicable for the maximum and minimum

VaR values as the firmwide VaR and the VaR values for the four risk categories

might have occurred on different days during the period.

(2)The aggregated VaR presented here is less than the sum of the individual

components (i.e., interest rate risk, foreign exchange rate risk, equity risk and

commodity price risk) due to the benefit of diversification among the four risk

categories. Diversification benefit equals the difference between aggregated

VaR and the sum of VaRs for the four risk categories and arises because the

market risk categories are not perfectly correlated.

VaR for our capital markets trading activities, which excludes the

impact on VaR for each component of market risk from our asset

management activities, by interest rate and credit spreads, equity,

currency and commodity products using the past 365 days of

historical data:


	VaR at November 30, 2024	Daily Capital Markets VaR
$ in millions		Daily VaR for 2024
Risk Categories		Average	High	Low
Interest Rates and Credit Spreads .............................	$4.33	$5.66	$11.88	$0.98
Equity Prices ........................	7.27	7.00	18.85	4.18
Currency Rates ....................	0.52	0.45	0.90	0.11
Commodity Prices ..............	—	0.01	0.03	—
Diversification Effect (1) ....	(5.69)	(4.59)	N/A	N/A
Capital Markets VaR (2) ....	$6.43	$8.53	$12.47	$5.52


	VaR at November 30, 2023	Daily Capital Markets VaR
$ in millions		Daily VaR for 2023
Risk Categories		Average	High	Low
Interest Rates and Credit Spreads .............................	$4.75	$7.11	$11.79	$4.01
Equity Prices ........................	4.02	6.70	10.68	3.83
Currency Rates ....................	0.71	0.29	0.78	0.01
Commodity Prices ..............	—	0.01	0.71	—
Diversification Effect (1) ....	(2.88)	(4.98)	N/A	N/A
Capital Markets VaR (2) ....	$6.60	$9.13	$11.94	$6.34

(1)The diversification effect is not applicable for the maximum and minimum

VaR values as the capital markets VaR and the VaR values for the four risk

categories might have occurred on different days during the period.

(2)The aggregated VaR presented here is less than the sum of the individual

components (i.e., interest rate risk, foreign exchange rate risk, equity risk and

commodity price risk) due to the benefit of diversification among the four risk

categories. Diversification benefit equals the difference between aggregated

VaR and the sum of VaRs for the four risk categories and arises because the

market risk categories are not perfectly correlated.


November 2024 Form 10-K		34

Our average daily firmwide VaR decreased to $13.13 million for 2024 from $13.57 million for 2023 driven by overall lower interest rate

and credit spread exposures across the capital markets desks, partially offset by an increase in equity exposure in our asset

management business. The average daily capital markets VaR decreased to $8.53 million for 2024 from $9.13 million for 2023 driven

by lower interest rate and credit spread exposures.

The efficacy of the VaR model is tested by comparing our actual daily net revenues for those positions included in the calculation of

VaR with the daily VaR estimate. This evaluation is performed at various levels, from the overall level down to specific business lines.

For the VaR model, revenue is defined as principal transactions revenues, trading related commissions, revenue from securitization

activities and net interest income. VaR backtesting methodologies differ for regulated entities with approved capital models.

For a 95% confidence one day VaR model (i.e., no intra-day trading), assuming current changes in market value are consistent with the

historical changes used in the calculation, losses would not be expected to exceed the VaR estimates more than twelve times on an

annual basis (i.e., once in every 20 days). During 2024, there was one day when the aggregate net trading loss exceeded the 95% one

day VaR.

The chart below presents our daily firmwide VaR and capital markets VaR over the last four quarters. In the last quarter of 2024, VaR

increase was driven by average increase in equity exposures in asset management.

Daily Net Trading Revenue

There were 19 days with firmwide trading losses out of a total of 251 trading days in 2024. The histogram below presents the

distribution of our actual daily net trading revenue for substantially all of our trading activities for 2024 (in millions):


35		Jefferies Financial Group Inc.

Other Risk Measures

The VaR model does not include certain positions that are best measured and monitored using sensitivity analysis. Risk Management

has additional procedures in place to assure that the level of potential loss driven by those positions not in the VaR model arising from

market movements are within acceptable levels. Such procedures include performing stress tests and profit and loss analysis. The

table below presents the potential reduction in earnings associated with a 10% stress of the fair value of the positions that are not

included in the VaR model at November 30, 2024:


$ in thousands	10% Sensitivity
Investment in funds (1) ............................................................................................................................................................................................	$123,838
Private investments ..................................................................................................................................................................................................	51,214
Corporate debt securities in default .......................................................................................................................................................................	22,917
Trade claims ..............................................................................................................................................................................................................	3,852

(1)Includes investments in hedge funds, fund of funds and private equity funds classified within Level 3 of the fair value hierarchy and excluded from

the fair value hierarchy based on net asset value.

The impact of changes in our own credit spreads on our structured notes for which the fair value option was elected is not included in

VaR. The estimated credit spread risk sensitivity for each one basis point widening in our own credit spreads on financial liabilities for

which the fair value option was elected was an increase in value of approximately $1.6 million at November 30, 2024, which is included

in other comprehensive income.

Other Risk

We are also subject to interest rate risk on our long-term fixed interest rate debt. Generally, the fair market value of debt securities with

a fixed interest rate will increase as interest rates fall, and the fair market value will decrease as interest rates rise. The following table

represents principal cash flows by expected maturity dates and the related weighted-average interest rate on those maturities for our

consolidated long-term debt obligations, inclusive of any related interest rate hedges. For the variable rate borrowings, the weighted-

average interest rates are based on the rates in effect at the reporting date. Our market risk with respect to foreign currency exposure

on our long-term debt is also presented in the table below. For additional information, refer to Note 18, Borrowings in our consolidated

financial statements included in this Annual Report on Form 10-K.


	Expected Maturity Date (Fiscal Years)
$ in thousands	2025	2026	2027	2028	2029	Thereafter	Total	Fair Value
Rate Sensitive Liabilities:
Fixed Interest Rate Borrowings	$679,449	$70,508	$448,874	$1,093,018	$327,777	$4,642,363	$7,261,989	$7,358,465
Weighted-Average Interest Rate	4.19%	5.50%	5.23%	5.85%	5.58%	5.90%
Variable Interest Rate Borrowings	$122,064	$890,763	$1,107,825	$55,727	$310,866	$1,907,398	$4,394,643	$4,186,501
Weighted-Average Interest Rate	6.34%	4.55%	6.73%	6.50%	6.48%	5.53%
Borrowings with Foreign Currency Exposure	$16,977	$876,621	$—	$—	$533,310	$802,888	$2,229,796	$2,189,456
Weighted-Average Interest Rate	5.24%	3.95%	—%	—%	4.04%	6.91%

Stress Tests and Scenario Analysis

Stress tests are used to analyze the potential impact of specific

events or extreme market moves on the current portfolio both

firm-wide and within business segments. Stress testing is an

important part of our risk management approach because it

allows us to quantify our exposure to tail risks, highlight potential

loss concentrations, undertake risk/reward analysis, set risk

controls and overall assess and mitigate our risk.

We employ a range of stress scenarios, which comprise both

historical market price and rate changes and hypothetical market

environments, and generally involve simultaneous changes of

many risk factors. Indicative market changes in the scenarios

include, but are not limited to, a large widening of credit spreads,

a substantial decline in equities markets, significant moves in

selected emerging markets, large moves in interest rates and

changes in the shape of the yield curve.

Unlike our VaR, which measures potential losses within a given

confidence interval, stress scenarios do not have an associated

implied probability. Rather, stress testing is used to estimate the

potential loss from market moves that tend to be larger than

those embedded in the VaR calculation. Stress testing

complements VaR to cover for potential limitations of VaR such

as the breakdown in correlations, non-linear risks, tail risk and

extreme events and capturing market moves beyond the

confidence levels assumed in the VaR calculations.

Stress testing is performed and reported at least weekly as part

of our risk management process and on an ad hoc basis in

response to market events or concerns. Current stress tests

provide estimated revenue and loss of the current portfolio

through a range of both historical and hypothetical events. The

stress scenarios are reviewed and assessed at least annually so

that they remain relevant and up to date with market

developments. Additional hypothetical scenarios are also

conducted on a sub-portfolio basis to assess the impact of any

relevant idiosyncratic stress events as needed.


November 2024 Form 10-K		36

Counterparty Credit Risk

Credit risk is the risk of loss due to adverse changes in a

counterparty’s credit worthiness or its ability or willingness to

meet its financial obligations in accordance with the terms and

conditions of a financial contract.

We are exposed to credit risk as a trading counterparty to other

broker-dealers and customers, as a counterparty to derivative

contracts, as a direct lender and through extending loan

commitments and providing securities-based lending and as a

member of exchanges and clearing organizations. Credit

exposure exists across a wide range of products, including cash

and cash equivalents, loans, securities finance transactions and

over-the-counter derivative contracts. The main sources of credit

risk are:

•Loans and lending arising in connection with our investment

banking and capital markets activities, which reflects our

exposure at risk on a default event with no recovery of loans.

Current exposure represents loans that have been drawn by the

borrower and lending commitments that are outstanding. In

addition, credit exposures on forward settling traded loans are

included within our loans and lending exposures for

consistency with the balance sheet categorization of these

items. Loans and lending also arise in connection with our

portion of a Secured Revolving Credit Facility that is with us

and Massachusetts Mutual Life Insurance Company, to be

funded equally, to support loan underwritings by Jefferies

Finance. For further information on this facility, refer to Note

11, Investments in our consolidated financial statements

included in this Annual Report on Form 10-K. In addition, we

have loans outstanding to certain of our officers and

employees (none of whom are executive officers or directors).

For further information on these employee loans, refer to Note

24, Related Party Transactions in our consolidated financial

statements included in this Annual Report on Form 10-K.

•Securities and margin financing transactions, which reflect our

credit exposure arising from reverse repurchase agreements,

repurchase agreements and securities lending agreements to

the extent the fair value of the underlying collateral differs from

the contractual agreement amount and from margin provided

to customers.

•OTC derivatives, which are reported net by counterparty when a

legal right of setoff exists under an enforceable master netting

agreement. OTC derivative exposure is based on a contract at

fair value, net of cash collateral received or posted under credit

support agreements. In addition, credit exposures on forward

settling trades are included within our derivative credit

exposures.

•Cash and cash equivalents, which includes both interest-

bearing and non-interest-bearing deposits at banks.

Credit is extended to counterparties in a controlled manner and in

order to generate acceptable returns, whether such credit is

granted directly or is incidental to a transaction. All extensions of

credit are monitored and managed as a whole to limit exposure

to loss related to credit risk. Credit risk is managed according to

the Credit Risk Management Policy, which sets out the process

for identifying counterparty credit risk, establishing counterparty

limits, and managing and monitoring credit limits. The policy

includes our approach for:

•Client on-boarding and approving counterparty credit limits;

•Negotiating, approving and monitoring credit terms in legal and

master documentation;

•Determining the analytical standards and risk parameters for

ongoing management and monitoring credit risk books;

•Actively managing daily exposure, exceptions and breaches;

and

•Monitoring daily margin call activity and counterparty

performance.

Counterparty credit exposure limits are granted within our credit

ratings framework, as detailed in the Credit Risk Management

Policy. The Credit Risk Department assesses counterparty credit

risk and sets credit limits at the counterparty master agreement

level. Limits must be approved by appropriate credit officers and

initiated in our credit and trading systems before trading

commences. All credit exposures are reviewed against approved

limits on a daily basis.

Our Secured Revolving Credit Facility, which supports loan

underwritings by Jefferies Finance, is governed under separate

policies other than the Credit Risk Management Policy and is

approved by our Board. The loans outstanding to certain of our

officers and employees are extended pursuant to a review by our

most senior management.

Current counterparty credit exposures at November 30, 2024 and

2023 are summarized in the tables below and provided by credit

quality, region and industry. Credit exposures presented take

netting and collateral into consideration by counterparty and

master agreement. Collateral taken into consideration includes

both collateral received as cash as well as collateral received in

the form of securities or other arrangements. Current exposure is

the loss that would be incurred on a particular set of positions in

the event of default by the counterparty, assuming no recovery.

Current exposure equals the fair value of the positions less

collateral. Issuer risk is the credit risk arising from inventory

positions (for example, corporate debt securities and secondary

bank loans). Issuer risk is included in our country risk exposure

within the following tables.


37		Jefferies Financial Group Inc.


Counterparty Credit Exposure by Credit Rating
	Loans and Lending		Securities and Margin Finance		OTC Derivatives		Total		Cash and Cash Equivalents		Total with Cash and Cash Equivalents
	At		At		At		At		At		At
$ in millions	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023
AAA Range	$—	$—	$12.0	$15.1	$—	$—	$12.0	$15.1	$8,227.9	$5,919.7	$8,239.9	$5,934.8
AA Range	80.0	75.1	190.3	113.3	5.6	0.9	275.9	189.3	63.8	4.4	339.7	193.7
A Range	0.2	—	1,145.1	884.2	415.0	293.1	1,560.3	1,177.3	3,691.8	2,502.1	5,252.1	3,679.4
BBB Range	253.5	250.0	31.2	81.6	40.0	50.4	324.7	382.0	169.4	100.2	494.1	482.2
BB or Lower	37.2	38.0	31.2	16.1	78.7	65.6	147.1	119.7	0.5	—	147.6	119.7
Unrated	322.6	341.1	—	—	5.3	7.5	327.9	348.6	—	—	327.9	348.6
Total	$693.5	$704.2	$1,409.8	$1,110.3	$544.6	$417.5	$2,647.9	$2,232.0	$12,153.4	$8,526.4	$14,801.3	$10,758.4

Counterparty Credit Exposure by Region
	Loans and Lending		Securities and Margin Finance		OTC Derivatives		Total		Cash and Cash Equivalents		Total with Cash and Cash Equivalents
	At		At		At		At		At		At
$ in millions	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023
Asia-Pacific/Latin America/Other	$15.8	$15.8	$130.4	$57.8	$0.2	$3.2	$146.4	$76.8	$520.3	$378.2	$666.7	$455.0
Europe and the Middle East	0.2	—	523.2	482.1	88.7	92.6	612.1	574.7	70.8	43.3	682.9	618.0
North America	677.5	688.4	756.2	570.4	455.7	321.7	1,889.4	1,580.5	11,562.3	8,104.9	13,451.7	9,685.4
Total	$693.5	$704.2	$1,409.8	$1,110.3	$544.6	$417.5	$2,647.9	$2,232.0	$12,153.4	$8,526.4	$14,801.3	$10,758.4

Counterparty Credit Exposure by Industry
	Loans and Lending		Securities and Margin Finance		OTC Derivatives		Total		Cash and Cash Equivalents		Total with Cash and Cash Equivalents
	At		At		At		At		At		At
$ in millions	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023	November 30, 2024	November 30, 2023
Asset Managers	$6.4	$7.4	$0.8	$0.8	$—	$—	$7.2	$8.2	$8,227.9	$5,919.7	$8,235.1	$5,927.9
Banks, Broker-Dealers	253.7	250.0	849.0	752.0	466.6	341.5	1,569.3	1,343.5	3,925.5	2,606.7	5,494.8	3,950.2
Commodities	—	—	—	—	—	10.2	—	10.2	—	—	—	10.2
Corporates	187.1	177.0	—	—	69.5	53.2	256.6	230.2	—	—	256.6	230.2
As Agent Banks	—	—	474.8	287.7	—	—	474.8	287.7	—	—	474.8	287.7
Other	246.3	269.8	85.2	69.8	8.5	12.6	340.0	352.2	—	—	340.0	352.2
Total	$693.5	$704.2	$1,409.8	$1,110.3	$544.6	$417.5	$2,647.9	$2,232.0	$12,153.4	$8,526.4	$14,801.3	$10,758.4

For additional information regarding credit exposure to OTC derivative contracts, refer to Note 7, Derivative Financial Instruments in our

consolidated financial statements included in this Annual Report on Form 10-K.


November 2024 Form 10-K		38

Country Risk Exposure

Country risk is the risk that events or developments that occur in the general environment of a country or countries due to economic,

political, social, regulatory, legal or other factors, will affect the ability of obligors of the country to honor their obligations. We define the

country of risk as the country of jurisdiction or domicile of the obligor and monitor country risk resulting from both trading positions and

counterparty exposure, which may not include the offsetting benefit of any financial instruments utilized to manage market risk. The

following tables reflect our top exposures at November 30, 2024 and 2023 to the sovereign governments, corporations and financial

institutions in those non- U.S. countries in which we have net long issuer and counterparty exposure:


	November 30, 2024
	Issuer Risk			Counterparty Risk				Issuer and Counterparty Risk
$ in millions	Fair Value of Long Debt Securities	Fair Value of Short Debt Securities	Net Derivative Notional Exposure	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Cash and Cash Equivalents	Excluding Cash and Cash Equivalents	Including Cash and Cash Equivalents
Canada	$259.2	$(280.1)	$109.7	$—	$46.6	$360.1	$59.3	$495.5	$554.8
United Kingdom	1,332.5	(680.8)	(364.3)	0.1	95.8	76.5	37.9	459.8	497.7
France	592.2	(495.0)	7.7	0.1	184.9	1.6	—	291.5	291.5
Hong Kong	73.5	(36.5)	(6.0)	—	2.4	—	250.0	33.4	283.4
Spain	403.1	(263.6)	(6.0)	—	63.1	1.2	0.5	197.8	198.3
Netherlands	484.1	(450.4)	125.4	—	5.7	1.7	0.1	166.5	166.6
Japan	2,146.0	(2,093.5)	0.4	—	63.2	—	37.4	116.1	153.5
Australia	523.8	(426.8)	(16.8)	—	26.5	—	44.6	106.7	151.3
India	27.4	(29.7)	—	—	—	—	142.9	(2.3)	140.6
Italy	1,070.9	(569.3)	(402.9)	—	0.4	—	1.1	99.1	100.2
Total	$6,912.7	$(5,325.7)	$(552.8)	$0.2	$488.6	$441.1	$573.8	$1,964.1	$2,537.9


	November 30, 2023
	Issuer Risk			Counterparty Risk				Issuer and Counterparty Risk
$ in millions	Fair Value of Long Debt Securities	Fair Value of Short Debt Securities	Net Derivative Notional Exposure	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Cash and Cash Equivalents	Excluding Cash and Cash Equivalents	Including Cash and Cash Equivalents
France	$649.7	$(428.0)	$(70.2)	$—	$183.6	$6.0	$—	$341.1	$341.1
Canada	216.5	(168.5)	2.1	—	83.0	191.6	1.7	324.7	326.4
United Kingdom	1,088.6	(621.6)	(244.8)	—	50.5	84.1	25.5	356.8	382.3
Italy	1,138.9	(840.1)	(75.0)	—	2.8	—	0.6	226.6	227.2
Hong Kong	26.6	(33.1)	(1.3)	—	4.9