Jefferies Finance LLC

Funding, credit, and operational support from Jefferies Group and MassMutual Moderate strategic importance to Jefferies Group Concentration in leveraged lending High debt leverage High credit risk of loans The stable outlook on Jefferies Finance LLC (JFIN) reflects S&P Global Ratings' expectation that the firm will maintain leverage below 6.5x and adequate funding and liquidity. While leveraged loan market conditions have improved since the first half of 2016, we expect that the firm's risk exposure, origination volume, and profitability will continue to be driven by potentially volatile conditions in the leveraged loan market. We expect realized credit losses to remain manageable and be largely born by the collateralized loan obligations (CLOs). Further, we expect that Mutual Life Insurance Co. (MassMutual) and

...The stable outlook on Jefferies Finance LLC (JFIN) reflects S&P Global Ratings' expectation that the firm will maintain leverage below 6.5x and adequate funding and liquidity. While leveraged loan market conditions have improved since the first half of 2016, we expect that the firm's risk exposure, origination volume, and profitability will continue to be driven by potentially volatile conditions in the leveraged loan market. We expect realized credit losses to remain manageable and be largely born by the collateralized loan obligations (CLOs). Further, we expect that Mutual Life Insurance Co. (MassMutual) and Jefferies Group LLC (Jefferies) will continue to support JFIN and that it will remain strategically important to Jefferies/Leucadia. We could lower our ratings over the next 12 months if:...

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