Egan Jones says Jefferies (JEF) needs to raise $1B in equity (market cap is just $2B) and unload...

|By:, SA News Editor

Egan Jones says Jefferies (JEF) needs to raise $1B in equity (market cap is just $2B) and unload $5B in assets if it wants to avoid getting downgraded to junk territory. The 90% debt/capital ratio is more along the lines of Goldman Sachs (GS) and Morgan Stanley (MS). The difference is Jefferies does not have implicit government backing.