Leucadia National Corp.: Liquidity And Credit Risk Analysis
- Since investment banks usually use high leverages, it is important to understand the risk associated with Jefferies.
- After comparing Jefferies with Goldman Sachs, we can see Jefferies' risk on derivatives and level 3 asset could be more than 10 times less.
- Both Jefferies and Leucadia use long maturity debt as their primary financing. This shows that they are more conservative and also reflects their view on interest rate trend.