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Fair Value Disclosures | 6 Months Ended
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May 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Disclosures | Note 6. Fair Value Disclosures
| May 31, 2025 (1)
$ in thousands | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (2) | Total
Assets: |  |  |  |  |
Financial instruments owned: |  |  |  |  |
Corporate equity securities .................................................................................. | $5,018,987 | $417,979 | $231,160 | $— | $5,668,126
Corporate debt securities ..................................................................................... | — | 5,375,646 | 44,682 | — | 5,420,328
Collateralized debt obligations and collateralized loan obligations ............... | — | 685,511 | 70,948 | — | 756,459
U.S. government and federal agency securities ................................................ | 3,139,294 | 130,185 | — | — | 3,269,479
Municipal securities .............................................................................................. | — | 621,737 | — | — | 621,737
Sovereign obligations ............................................................................................ | 694,500 | 738,064 | — | — | 1,432,564
Residential mortgage-backed securities ............................................................ | — | 2,040,529 | 7,947 | — | 2,048,476
Commercial mortgage-backed securities .......................................................... | — | 72,563 | 505 | — | 73,068
Other asset-backed securities ............................................................................. | — | 579,030 | 153,681 | — | 732,711
Loans and other receivables ................................................................................ | — | 2,572,953 | 92,168 | — | 2,665,121
Derivatives .............................................................................................................. | 472 | 3,995,263 | 8,569 | (2,715,818) | 1,288,486
Investments at fair value ...................................................................................... | — | 7 | 153,379 | — | 153,386
Total financial instruments owned, excluding Investments at fair value based on NAV .................................................................................................... | $8,853,253 | $17,229,467 | $763,039 | $(2,715,818) | $24,129,941
Securities received as collateral .......................................................................... | $50,968 | $— | $— | $— | $50,968
Liabilities: |  |  |  |  |
Financial instruments sold, not yet purchased: |  |  |  |  |
Corporate equity securities .................................................................................. | $3,870,700 | $14,554 | $161 | $— | $3,885,415
Corporate debt securities ..................................................................................... | — | 3,534,470 | 644 | — | 3,535,114
Collateralized debt obligations and collateralized loan obligations ............... | — | 1 | — | — | 1
U.S. government and federal agency securities ................................................ | 2,136,579 | 5 | — | — | 2,136,584
Sovereign obligations ............................................................................................ | 814,027 | 592,350 | — | — | 1,406,377
Commercial mortgage-backed securities .......................................................... | — | 37 | 1,153 | — | 1,190
Loans ....................................................................................................................... | — | 87,415 | 313 | — | 87,728
Derivatives .............................................................................................................. | — | 3,768,347 | 41,857 | (3,087,478) | 722,726
Total financial instruments sold, not yet purchased ....................................... | $6,821,306 | $7,997,179 | $44,128 | $(3,087,478) | $11,775,135
Other secured financings ...................................................................................... | $— | $410,413 | $18,876 | $— | $429,289
Obligation to return securities received as collateral ....................................... | 50,968 | — | — | — | 50,968
Long-term debt ....................................................................................................... | — | 2,313,361 | 991,156 | — | 3,304,517
(1)Excludes investments at fair value based on net asset value (“NAV”) of $1.44 billion at May 31, 2025 by level within the fair value hierarchy. (2)Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.
| November 30, 2024 (1)
$ in thousands | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (2) | Total
Assets: |  |  |  |  |
Financial instruments owned: |  |  |  |  |
Corporate equity securities .................................................................................. | $5,238,058 | $302,051 | $239,364 | $— | $5,779,473
Corporate debt securities ..................................................................................... | — | 5,310,815 | 24,931 | — | 5,335,746
Collateralized debt obligations and collateralized loan obligations ............... | — | 1,029,662 | 63,976 | — | 1,093,638
U.S. government and federal agency securities ................................................ | 3,583,139 | 160,227 | — | — | 3,743,366
Municipal securities .............................................................................................. | — | 320,507 | — | — | 320,507
Sovereign obligations ............................................................................................ | 749,912 | 630,681 | 172 | — | 1,380,765
Residential mortgage-backed securities ............................................................ | — | 2,348,862 | 7,714 | — | 2,356,576
Commercial mortgage-backed securities .......................................................... | — | 146,752 | 477 | — | 147,229
Other asset-backed securities ............................................................................. | — | 110,687 | 103,214 | — | 213,901
Loans and other receivables ................................................................................ | — | 1,706,152 | 152,586 | — | 1,858,738
Derivatives .............................................................................................................. | 146 | 3,181,454 | 3,926 | (2,667,751) | 517,775
Investments at fair value ...................................................................................... | — | 6 | 137,865 | — | 137,871
Total financial instruments owned, excluding Investments at fair value based on NAV .................................................................................................... | $9,571,255 | $15,247,856 | $734,225 | $(2,667,751) | $22,885,585
Securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations ................................ | $120,414 | $— | $— | $— | $120,414
Securities received as collateral .......................................................................... | 185,588 | — | — | — | 185,588
Liabilities: |  |  |  |  |
Financial instruments sold, not yet purchased: |  |  |  |  |
Corporate equity securities .................................................................................. | $3,013,877 | $73,240 | $208 | $— | $3,087,325
Corporate debt securities ..................................................................................... | — | 3,105,010 | 165 | — | 3,105,175
U.S. government and federal agency securities ................................................ | 2,904,379 | 26 | — | — | 2,904,405
Sovereign obligations ............................................................................................ | 667,647 | 422,124 | — | — | 1,089,771
Commercial mortgage-backed securities ......................................................... | — | — | 1,153 | — | 1,153
Loans ....................................................................................................................... | — | 92,321 | 16,864 | — | 109,185
Derivatives .............................................................................................................. | 13 | 3,477,802 | 26,212 | (2,793,713) | 710,314
Total financial instruments sold, not yet purchased ....................................... | $6,585,916 | $7,170,523 | $44,602 | $(2,793,713) | $11,007,328
Other secured financings ...................................................................................... | $— | $9,964 | $14,884 | $— | $24,848
Obligation to return securities received as collateral ...................................... | 185,588 | — | — | — | 185,588
Long-term debt ....................................................................................................... | — | 1,529,443 | 821,903 | — | 2,351,346
(1)Excludes investments at fair value based on NAV of $1.25 billion at November 30, 2024 by level within the fair value hierarchy. (2)Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. There have been no significant changes in valuation techniques and inputs used in measuring our financial assets and liabilities that are accounted for at fair value on a recurring basis. Refer to our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2024. Investments at Fair Value Investments at fair value includes investments in hedge funds, private equity funds, credit funds, real estate funds and other funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Information about our investments in entities that have the characteristics of an investment company:
| May 31, 2025
$ in thousands | Fair Value (1) | Unfunded Commitments | Redemption Frequency | Redemption Notice Period
Hedge Funds (2) .............. | $689,960 | $— | Quarterly (50%) Monthly (50%) | 45 - 90 days 45 - 60 days
Private Equity Funds (3) .............. | 64,532 | 26,638 | N/R (100%) | N/R
Credit Funds (4) .............. | 489,597 | 106 | Quarterly (60%) Monthly (2%) N/R (38%) | 90 days 30 days N/R
Real Estate and Other Funds (5) .... | 196,164 | 164,982 | Quarterly (26%) N/R (74%) | 90 days N/R
Total ...................... | $1,440,253 | $191,726 |  |
| November 30, 2024
$ in thousands | Fair Value (1) | Unfunded Commitments | Redemption Frequency | Redemption Notice Period
Hedge Funds (2) ............ | $660,720 | $— | Quarterly (53%) Monthly (47%) | 45 - 90 days 45 - 60 days
Private Equity Funds (3) ............ | 60,215 | 30,530 | N/R (100%) | N/R
Credit Funds (4) | 430,429 | 30,554 | Quarterly (72%) Monthly (3%) N/R (25%) | 90 days 30 days N/R
Real Estate and Other Funds (5) . | 101,325 | 232,696 | N/R (100%) | N/R
Total ................... | $1,252,689 | $293,780 |  |
N/R - Not redeemable (1)Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements. (2)Includes investments in hedge funds that invest, long and short, primarily in both public and private equity securities in domestic and international markets, commodities and multi-asset securities. (3)Includes investments in equity funds that invest in the equity of various U.S. and foreign private companies in a broad range of industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are primarily expected to be liquidated in approximately one to ten years. (4)Primarily includes investments in funds that invest in: •distressed and special situations long/short credit strategies across sectors and asset types; •short-term trade receivables and payables that are expected to generally be outstanding between 90 to 120 days; •distressed and event-driven opportunities across structured credit, opportunistic credit, and private credit. (5)Primarily includes investments in corporate real estate strategies focused on buying or building real estate businesses. Level 3 Rollforwards
| Three Months Ended May 31, 2025 |
$ in thousands | Balance at February 28, 2025 | Total gains/ losses (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into/ (out of) Level 3 | Balance at May 31, 2025 | For instruments still held at May 31, 2025, changes in unrealized gains (losses) included in:
Earnings (1) | Other comprehensive income (loss) (1)
Level 3 assets: |  |  |  |  |  |  |  |  |  |
Financial instruments owned: |  |  |  |  |  |  |  |  |  |
Corporate equity securities .................... | $212,409 | $8,245 | $2,482 | $(2,201) | $— | $— | $10,225 | $231,160 | $5,003 | $—
Corporate debt securities ...................... | 25,925 | 2,547 | 18,805 | (15,740) | (2,177) | — | 15,322 | 44,682 | 2,194 | —
CDOs and CLOs ....................................... | 71,827 | (4,123) | 35,644 | (18,469) | (6,550) | — | (7,381) | 70,948 | (4,564) | —
RMBS ........................................................ | 7,526 | 436 | — | — | (15) | — | — | 7,947 | 439 | —
CMBS ........................................................ | 471 | 34 | — | — | — | — | — | 505 | 34 | —
Other ABS ................................................. | 147,319 | 6,814 | 27,523 | (26,231) | (1,863) | — | 119 | 153,681 | 5,985 | —
Loans and other receivables ................. | 153,764 | (7,236) | 18,008 | (39,475) | (13,063) | — | (19,830) | 92,168 | (10,875) | —
Investments at fair value ........................ | 157,881 | 6,041 | 261 | — | (804) | — | (10,000) | 153,379 | 3,581 | —
Level 3 liabilities: |  |  |  |  |  |  |  |  |  |
Financial instruments sold, not yet purchased: |  |  |  |  |  |  |  |  |  |
Corporate equity securities .................... | $590 | $(256) | $(173) | $— | $— | $— | $— | $161 | $31 | $—
Corporate debt securities ...................... | 1,113 | 222 | (41,346) | 41,436 | (662) | — | (119) | 644 | (86) | —
RMBS ........................................................ | 15 | (15) | — | — | — | — | — | — | — | —
CMBS ........................................................ | 1,154 | (1) | — | 35 | — | — | (35) | 1,153 | 1 | —
Loans ........................................................ | 848 | (658) | (37) | — | 183 | — | (23) | 313 | (226) | —
Net derivatives (2) ................................... | 42,076 | (1,132) | — | — | (4) | — | (7,652) | 33,288 | (6,385) | —
Other secured financings ....................... | 12,705 | — | — | — | (2,360) | 8,531 | — | 18,876 | — | —
Long-term debt ........................................ | 860,684 | 34,729 | — | — | (5,893) | 93,570 | 8,066 | 991,156 | (49,509) | 14,781
| Six Months Ended May 31, 2025 |
$ in thousands | Balance at November 30, 2024 | Total gains/ losses (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into/ (out of) Level 3 | Balance at May 31, 2025 | For instruments still held at May 31, 2025, changes in unrealized gains (losses) included in:
Earnings (1) | Other comprehensive income (loss) (1)
Assets: |  |  |  |  |  |  |  |  |  |
Financial instruments owned: |  |  |  |  |  |  |  |  |  |
Corporate equity securities ................ | $239,364 | $9,940 | $7,049 | $(5,366) | $494 | $— | $(20,321) | $231,160 | $8,292 | $—
Corporate debt securities ................... | 24,931 | 2,147 | 37,129 | (23,787) | (2,197) | — | 6,459 | 44,682 | 2,419 | —
CDOs and CLOs ................................... | 63,976 | (10,286) | 52,875 | (23,728) | (6,550) | — | (5,339) | 70,948 | (10,336) | —
Sovereign obligations ......................... | 172 | 2 | — | (174) | — | — | — | — | — | —
RMBS ..................................................... | 7,714 | 269 | — | — | (36) | — | — | 7,947 | 279 | —
CMBS .................................................... | 477 | 28 | — | — | — | — | — | 505 | 28 | —
Other ABS ............................................. | 103,214 | (264) | 86,866 | (30,929) | (4,175) | — | (1,031) | 153,681 | (565) | —
Loans and other receivables .............. | 152,586 | (5,759) | 72,851 | (82,603) | (21,549) | 3,670 | (27,028) | 92,168 | (9,134) | —
Investments at fair value .................... | 137,865 | 6,434 | 21,549 | — | (2,469) | — | (10,000) | 153,379 | 3,974 | —
Liabilities: |  |  |  |  |  |  |  |  |  |
Financial instruments sold, not yet purchased: |  |  |  |  |  |  |  |  |  |
Corporate equity securities ................ | $208 | $126 | $(173) | $— | $— | $— | $— | $161 | $(126) | $—
Corporate debt securities ................... | 165 | 52 | (135,198) | 135,433 | — | — | 192 | 644 | (123) | —
CMBS .................................................... | 1,153 | — | — | 35 | — | — | (35) | 1,153 | — | —
Loans .................................................... | 16,864 | (1,673) | (1,046) | — | 698 | — | (14,530) | 313 | 39 | —
Net derivatives (2) ............................... | 22,286 | (13,925) | — | 22,588 | (484) | — | 2,823 | 33,288 | 5,076 | —
Other secured financings ................... | 14,884 | 241 | — | — | (4,780) | 8,531 | — | 18,876 | (241) | —
Long-term debt .................................... | 821,903 | (21,118) | — | — | (2,799) | 218,124 | (24,954) | 991,156 | (19,522) | 40,640
(1)Realized and unrealized gains/losses are primarily reported in Principal transactions revenues. Changes in instrument-specific credit risk related to structured notes within Long-term debt are presented net of tax in our Consolidated Statements of Comprehensive Income. (2)Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased—Derivatives. Analysis of Level 3 Assets and Liabilities for the Three Months Ended May 31, 2025 Transfers of assets of $31.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Corporate debt securities of $15.9 million, Corporate equity securities of $11.1 million, Other ABS of $2.1 million and Loan and other receivables of $1.6 million due to reduced pricing transparency. Transfers of assets of $43.0 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Loans and other receivables of $21.5 million, Investments at fair value of $10.0 million, CDOs and CLOs of $8.0 million and Other ABS of $2.0 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $11.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Structured notes within Long-term debt of $13.2 million, partially offset by net derivatives transfers into Level 3 of $2.0 million due to reduced market and pricing transparency. Transfers of liabilities of $11.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Net derivatives of $5.7 million and structured notes within Long-term debt of $5.1 million due to greater pricing and market transparency. Net gains on Level 3 assets were $12.8 million and net losses on Level 3 liabilities were $32.9 million for the three months ended May 31, 2025. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities, Other ABS, Investments at fair value and Corporate debt securities, partially offset by decreased market values of Loans and other receivables and CDOs and CLOs. Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt, partially offset by decreased valuations of certain derivatives. Analysis of Level 3 Assets and Liabilities for the Six Months Ended May 31, 2025 Transfers of assets of $71.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Corporate equity securities of $30.3 million, Loan and other receivables of $27.1 million, Corporate debt securities of $8.0 million, Other ABS of $3.3 million and CDOs and CLOs of $3.0 million due to reduced pricing transparency. Transfers of assets of $129.0 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Loans and other receivables of $54.1 million, Corporate equity securities of $50.7 million, Investments at fair value of $10.0 million, CDOs and CLOs of $8.4 million and Other ABS of $4.4 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $7.9 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Net derivatives of $3.9 million and structured notes within Long-term debt of $3.9 million due to reduced market and pricing transparency. Transfers of liabilities of $44.4 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Structured notes within Long-term debt of $28.8 million and Loans of $14.5 million due to greater pricing and market transparency. Net gains on Level 3 assets were $2.5 million and net gains on Level 3 liabilities were $36.3 million for the six months ended May 31, 2025. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities, Investments at fair value and Corporate debt securities, partially offset by decreased valuations of CDOs and CLOs and Loans and other receivables. Net gains on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt, certain derivatives and loans.
| Three Months Ended May 31, 2024 |
$ in thousands | Balance at February 28, 2024 | Total gains/ losses (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into/ (out of) Level 3 | Balance at May 31, 2024 | For instruments still held at May 31, 2024, changes in unrealized gains (losses) included in:
Earnings (1) | Other comprehensive income (loss) (1)
Assets: |  |  |  |  |  |  |  |  |  |
Financial instruments owned: |  |  |  |  |  |  |  |  |  |
Corporate equity securities ................. | $173,214 | $(12,751) | $15,398 | $(18) | $— | $— | $2,912 | $178,755 | $(12,404) | $—
Corporate debt securities ................... | 35,335 | 1,363 | 1,091 | (16,250) | — | — | 17,178 | 38,717 | 89 | —
CDOs and CLOs .................................... | 69,367 | 1,220 | 6,810 | (1,905) | (5,527) | — | (1,339) | 68,626 | (675) | —
RMBS ..................................................... | 684 | (6) | — | — | (34) | — | — | 644 | — | —
CMBS ..................................................... | 473 | 4 | — | — | — | — | — | 477 | — | —
Other ABS .............................................. | 102,256 | (2,198) | 63,554 | (15,138) | (35,363) | — | 55,625 | 168,736 | (1,694) | —
Loans and other receivables .............. | 78,885 | 1,255 | 11,329 | (4,161) | (35) | — | 5,273 | 92,546 | 579 | —
Investments at fair value ..................... | 121,764 | 1,616 | 15,224 | (547) | — | — | — | 138,057 | 1,616 | —
Liabilities: |  |  |  |  |  |  |  |  |  |
Financial instruments sold, not yet purchased: |  |  |  |  |  |  |  |  |  |
Corporate equity securities ................. | 675 | 8 | — | 25 | — | — | — | 708 | (8) | —
Corporate debt securities ................... | 124 | (23) | — | 246 | — | — | 159 | 506 | 23 | —
CMBS ..................................................... | 944 | — | — | — | 105 | — | — | 1,049 | — | —
Loans ..................................................... | 1,466 | (251) | (925) | 2,801 | 81 | — | (1,588) | 1,584 | 309 | —
Net derivatives (2) ................................ | 52,089 | (10,062) | — | — | (9,689) | — | 2,539 | 34,877 | (178) | —
Other secured financings .................... | 3,965 | — | — | — | — | — | — | 3,965 | — | —
Long-term debt ..................................... | 779,529 | (2,477) | — | — | (2,109) | 6,616 | 2,653 | 784,212 | 9,334 | (6,857)
| Six Months Ended May 31, 2024 |
$ in thousands | Balance at November 30, 2023 | Total gains/ losses (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into/ (out of) Level 3 | Balance at May 31, 2024 | For instruments still held at May 31, 2024, changes in unrealized gains (losses) included in:
Earnings (1) | Other comprehensive income (loss) (1)
Assets: |  |  |  |  |  |  |  |  |  |
Financial instruments owned: |  |  |  |  |  |  |  |  |  |
Corporate equity securities ................ | $181,294 | $(12,817) | $15,956 | $(2,230) | $— | $— | $(3,448) | $178,755 | $(12,175) | $—
Corporate debt securities ................... | 26,112 | 3,830 | 25,563 | (17,217) | (200) | — | 629 | 38,717 | 2,997 | —
CDOs and CLOs ................................... | 64,862 | 9,006 | 20,333 | (15,838) | (7,293) | — | (2,444) | 68,626 | 4,904 | —
RMBS ..................................................... | 20,871 | (207) | 32 | (32) | (5,395) | — | (14,625) | 644 | 33 | —
CMBS .................................................... | 508 | (35) | 4 | — | — | — | — | 477 | (64) | —
Other ABS ............................................. | 117,661 | (5,913) | 76,263 | (32,817) | (26,619) | — | 40,161 | 168,736 | (3,938) | —
Loans and other receivables .............. | 130,101 | (39,831) | 18,555 | (3,974) | (17,892) | — | 5,587 | 92,546 | (17,220) | —
Investments at fair value .................... | 130,835 | (9,079) | 16,855 | — | (547) | — | (7) | 138,057 | (9,079) | —
Liabilities: |  |  |  |  |  |  |  |  |  |
Financial instruments sold, not yet purchased: |  |  |  |  |  |  |  |  |  |
Corporate equity securities | $676 | $1 | $— | $31 | $— | $— | $— | $708 | $(1) | $—
Corporate debt securities ................... | 124 | (23) | — | 246 | — | — | 159 | 506 | 23 | —
CMBS .................................................... | 840 | — | (245) | — | 455 | — | (1) | 1,049 | — | —
Loans .................................................... | 1,521 | (114) | (1,041) | 3,642 | 114 | — | (2,538) | 1,584 | 107 | —
Net derivatives (2) ............................... | 50,955 | (17,979) | (978) | 2,913 | (9,486) | — | 9,452 | 34,877 | 9,057 | —
Other secured financings ................... | 3,898 | 4,482 | — | — | (4,415) | — | — | 3,965 | (4,482) | —
Long-term debt .................................... | 744,597 | 9,651 | — | — | (2,109) | 28,072 | 4,001 | 784,212 | (5,117) | (4,534)
(1)Realized and unrealized gains/losses are primarily reported in Principal transactions revenues. Changes in instrument-specific credit risk related to structured notes within Long-term debt are presented net of tax in our Consolidated Statements of Comprehensive Income. (2)Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased—Derivatives. Analysis of Level 3 Assets and Liabilities for the Three Months Ended May 31, 2024 Transfers of assets of $99.2 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Other ABS of $61.9 million, Corporate debt securities of $17.3 million, Loan and other receivables of $11.4 million and Corporate equity securities of $5.4 million due to reduced pricing transparency. Transfers of assets of $19.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Oher ABS of $6.3 million, Loans and other receivables of $6.2 million, CDOs and CLOs of $4.5 million and Corporate equity securities of $2.5 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $47.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Structured notes within Long-term debt of $32.8 million and Net derivatives of $15.9 million due to reduced market and pricing transparency. Transfers of liabilities of $43.5 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Structured notes within Long-term debt of $30.1 million and Net derivatives of $13.4 million due to greater pricing and market transparency. Net losses on Level 3 assets were $9.5 million and net gains on Level 3 liabilities were $12.8 million for the three months ended May 31, 2024. Net losses on Level 3 assets were primarily due to decreased market values across Corporate equity securities and Other ABS, partially offset by increased valuations of Investments at fair value, Corporate debt securities, Loans and other receivables and CDOs and CLOs. Net gains on Level 3 liabilities were primarily due to decreased valuations of certain derivatives and structured notes within Long-term debt. Analysis of Level 3 Assets and Liabilities for the Six Months Ended May 31, 2024 Transfers of assets of $59.1 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Other ABS of $47.6 million, Loan and other receivables of $6.1 million, CDOs and CLOs of $2.7 million and Corporate debt securities of $2.6 million due to reduced pricing transparency. Transfers of assets of $33.3 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •RMBS of $14.6 million, Other ABS of $7.4 million, CDOs and CLOs of $5.1 million, Corporate equity securities of $3.6 million and Corporate debt securities of $2.0 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $62.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: •Structured notes within Long-term debt of $38.7 million and Net derivatives of $23.2 million due to reduced market and pricing transparency. Transfers of liabilities of $50.9 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: •Structured notes within Long-term debt of $34.7 million and Net derivatives of $13.7 million due to greater pricing and market transparency. Net losses on Level 3 assets were $55.0 million and net gains on Level 3 liabilities were $4.0 million for the six months ended May 31, 2024. Net losses on Level 3 assets were primarily due to decreased market values across Loans and other receivables, Corporate equity securities, Investments at fair value and Other ABS, partially offset by increased valuations of CDOs and CLOs and Corporate debt securities. Net gains on Level 3 liabilities were primarily due to decreased valuations of certain derivatives, partially offset by increased valuations of structured notes within Long-term debt and Other secured financings. Significant Unobservable Inputs used in Level 3 Fair Value Measurements The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared to the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period.
May 31, 2025
Financial Instruments Owned | Fair Value (in thousands) | Valuation Technique | Significant Unobservable Input(s) | Input / Range | Weighted Average
Corporate equity securities ..................... | $205,389 |  |  |  |  |  |
Non-exchange-traded securities | Market approach | Price | $0 | - | $486 | $80
Corporate debt securities ........................ | $38,700 | Market approach | Price | $49 | - | $118 | $52
|  | Discounted cash flows | Discount rate/yield | 18% | - | 26% | 21%
CDOs and CLOs .......................................... | $63,639 | Discounted cash flows | Constant prepayment rate | 20% | —
|  |  | Constant default rate | 2% | —
|  |  | Loss severity | 30% | —
|  |  | Discount rate/yield | 13% | - | 19% | 17%
|  | Market approach | Price | $98 | - | $114 | $105
RMBS ........................................................... | $7,947 | Discounted cash flows | Constant prepayment rate | 40% | —
|  |  | Loss severity | 90% | —
|  |  | Discount rate/yield | 18% | —
Other ABS ................................................... | $152,664 | Discounted cash flows | Discount rate/yield | 10% | - | 29% | 19%
|  |  | Cumulative loss rate | 11% | - | 34% | 17%
|  |  | Duration (years) | 0.6 | - | 1.2 | 1.0
|  | Market approach | Price | $114 | - | $135 | $122
|  | Scenario analysis | Estimated recovery percentage | 83% | —
Loans and other receivables ................... | $92,168 | Market approach | Price | $8 | - | $114 | $92
|  | Scenario analysis | Estimated recovery percentage | 17% | - | 251% | 91%
Derivatives .................................................. | $4,701 |  |  |  |  |  |
Embedded options |  | Market approach | Basis points upfront | 0.3 | —
Investments at fair value .......................... | $148,059 |  |  |  |  |  |
Private equity securities |  | Market approach | Price | $0 | - | $9,133 | $1,704
|  |  | Discount rate/yield | 28% | —
|  |  | Estimated revenue | $29,733,947 | —
Financial Instruments Sold, Not Yet Purchased: |  |  |  |  |  |
Derivatives .................................................. | $40,701 |  |  |  |  |  |
Equity options |  | Volatility benchmarking | Volatility | 49% | - | 51% | 50%
Options |  | Market approach | Basis points upfront | 0.0 | - | 23.8 | 15.6
Other secured financings ......................... | $18,876 | Scenario analysis | Estimated recovery percentage | 76% | - | 100% | 96%
|  | Market approach | Price | $112 | - | $117 | $114
Long-term debt .......................................... | $990,274 |  |  |  |  |  |
Structured notes |  | Market approach | Price | $66 | - | $116 | $97
November 30, 2024
Financial Instruments Owned | Fair Value (in thousands) | Valuation Technique | Significant Unobservable Input(s) | Input / Range | Weighted Average
Corporate equity securities ..................... | $239,364 |  |  |  |  |  |
Non-exchange-traded securities | Market approach | Price | $0 | - | $486 | $68
Corporate debt securities ........................ | $24,931 | Market approach | Price | $28 | - | $105 | $74
CDOs and CLOs .......................................... | $53,388 | Discounted cash flows | Constant prepayment rate | 20% | —
|  |  | Constant default rate | 2% | —
|  |  | Loss severity | 30% | —
|  |  | Discount rate/yield | 14% | - | 32% | 26%
|  | Market approach | Price | $70 | - | $106 | $94
RMBS ........................................................... | $7,714 | Discounted cash flows | Constant prepayment rate | 20% | —
|  |  | Loss severity | 10% | —
|  |  | Discount rate/yield | 12% | —
Other ABS ................................................... | $98,172 | Discounted cash flows | Discount rate/yield | 19% | - | 30% | 25%
|  |  | Cumulative loss rate | 17% | - | 34% | 24%
|  |  | Duration (years) | 0.9 | - | 1.0 | 0.9
|  | Market approach | Price | $106 | - | $127 | $121
|  | Scenario analysis | Estimated recovery percentage | 92% | —
Loans and other receivables ................... | $152,586 | Market approach | Price | $17 | - | $106 | $75
|  | Scenario analysis | Estimated recovery percentage | 3% | - | 252% | 50%
Derivatives .................................................. | $1,396 |  |  |  |  |  |
Embedded options |  | Market approach | Basis points upfront | 0.3 | —
Investments at fair value .......................... | $132,769 |  |  |  |  |  |
Private equity securities |  | Market approach | Price | $1 | - | $8,506 | $501
|  |  | Discount rate/yield | 28% | —
|  |  | Estimated revenue | $29,908,372 | —
Financial Instruments Sold, Not Yet Purchased: |  |  |  |  |  |
Loans .......................................................... | $16,864 | Market approach | Price | $17 | - | $100 | $75
|  | Scenario analysis | Estimated recovery percentage | 0% | - | 205% | 50%
Derivatives .................................................. | $25,045 |  |  |  |  |  |
Equity options |  | Volatility benchmarking | Volatility | 28% | - | 102% | 49%
Options |  | Market approach | Basis points upfront | 8.0 | - | 22.3 | 14.9
Other secured financings ......................... | $14,884 | Scenario analysis | Estimated recovery percentage | 60% | - | 100% | 93%
|  | Market approach | Price | $117 | —
Long-term debt .......................................... | $821,903 |  |  |  |  |  |
Structured notes |  | Market approach | Price | $61 | - | $122 | $96
The fair values of certain Level 3 assets and liabilities that were determined based on third-party pricing information, unadjusted past transaction prices or a percentage of the reported enterprise fair value are excluded from the above tables. At May 31, 2025 and November 30, 2024, asset exclusions consisted of $49.8 million and $23.9 million, respectively, primarily composed of Corporate equity securities, CDOs and CLOs, Corporate debt securities, Investments at fair value, certain derivatives, Other ABS and CMBS. At May 31, 2025 and November 30, 2024, liability exclusions consisted of $4.3 million and $2.7 million, respectively, primarily composed of CMBS, certain derivatives, structured notes within Long-term debt, loans, corporate equity securities and corporate debt securities. Uncertainty of Fair Value Measurement from Use of Significant Unobservable Inputs For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the uncertainty of the fair value measurement due to the use of significant unobservable inputs and interrelationships between those unobservable inputs (if any) are described below: •Non-exchange-traded securities, corporate debt securities, CDOs and CLOs, loans and other receivables, other ABS, private equity securities, certain derivatives, other secured financings and structured notes using a market approach valuation technique. A significant increase (decrease) in the price of the private equity securities, nonexchange-traded securities, corporate debt securities, CDOs and CLOs, other ABS, loans and other receivables, other secured financings or structured notes would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the revenue or revenue multiple related to private equity securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount rate/security yield related to private equity securities would result in a significantly lower (higher) fair value measurement. Depending on whether we are a receiver or (payer) of basis points upfront, a significant increase in basis points would result in a significant increase (decrease) in the fair value measurement of options. •Loans and other receivables, other ABS and other secured financings using a scenario analysis valuation technique. A significant increase (decrease) in the possible recovery rates underlying the financial instrument would result in a significantly higher (lower) fair value measurement for the financial instrument. •CDOs and CLOs, corporate debt securities, RMBS and other ABS using a discounted cash flows valuation technique. A significant increase (decrease) in isolation in the constant default rate, loss severity or cumulative loss rate would result in a significantly lower (higher) fair value measurement. The impact of changes in the constant prepayment rate and duration would have differing impacts depending on the capital structure and type of security. A significant increase (decrease) in the discount rate/security yield would result in a significantly lower (higher) fair value measurement. •Derivative equity options using volatility benchmarking. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement. Fair Value Option Election For a description of our financial assets and liabilities for which we have elected the fair value option, refer to our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2024. Fair value option gains (losses):
| Three Months Ended May 31, | Six Months Ended May 31,
$ in thousands | 2025 | 2024 | 2025 | 2024
Financial instruments owned: |  |  |  |
Loans and other receivables (1) . | $69,578 | $(28,264) | $103,854 | $(39,691)
Other secured financings: |  |  |  |
Other changes in fair value (1) ... | $(1,418) | $— | $(1,659) | $(4,482)
Long-term debt: |  |  |  |
Changes in instrument-specific credit risk (2) ............................ | $28,763 | $(13,790) | $66,501 | $(17,769)
Other changes in fair value (1) ... | 13,225 | 16,367 | 27,548 | (27,451)
(1)Other changes in fair value are included in Principal transactions revenues. (2)Changes in fair value of structured notes related to instrument-specific credit risk are presented net of tax in our Consolidated Statements of Comprehensive Income. Fair value option amounts by which contractual principal is greater than (less than) fair value:
$ in thousands | May 31, 2025 | November 30, 2024
Financial instruments owned: |  |
Loans and other receivables (1) ............................... | $1,635,461 | $1,603,512
Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) ............................................................... | 135,253 | 132,838
Long-term debt ........................................................... | 266,641 | 131,107
Other secured financings ......................................... | (1,200) | 459
(1)Interest income is recognized separately from other changes in fair value and is included in Interest revenues. (2)Amounts include loans and other receivables 90 days or greater past due by which contractual principal exceeds fair value of $50.3 million and $48.8 million at May 31, 2025 and November 30, 2024, respectively. The aggregate fair value of loans and other receivables on nonaccrual status and/or 90 days or greater past due was $68.4 million and $126.9 million at May 31, 2025 and November 30, 2024, respectively, which includes loans and other receivables 90 days or greater past due of $60.0 million and $120.0 million at May 31, 2025 and November 30, 2024, respectively. Assets Measured at Fair Value on a Non-recurring Basis Our shares in Monashee, an equity method investment, were measured at fair value on a nonrecurring basis during the six months ended May 31, 2024 and are not included in the tables above. During the six months ended May 31, 2024, we converted our shares in Monashee to a newly created class of nonmarketable preferred shares and remeasured our equity method investment to a fair value of $21.9 million in connection with the nonmonetary exchange and the preferred shares are subsequently accounted for at cost pursuant to the measurement alternative. Financial Instruments Not Measured at Fair Value Certain of our financial instruments are not carried at fair value but are recorded at amounts that approximate fair value due to their liquid or short-term nature and generally negligible credit risk. These financial assets include Cash and cash equivalents and Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations and would generally be presented within Level 1 of the fair value hierarchy. We have equity securities without readily determinable fair values, which we account for at cost, minus impairment, which are presented within Other assets and were $21.9 million at both May 31, 2025 and November 30, 2024. There were no impairments and downward adjustments on these investments during the three and six months ended May 31, 2025 and 2024.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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