Experienced management team Ongoing business support from its joint venture owners Strategic importance to Jefferies Group LLC Limited scale and concentration in commercial real estate Fluctuating capital base Dependence on repurchase agreement funding facilities The stable outlook on Jefferies LoanCore LLC (JLC) reflects S&P Global Ratings' expectation that the firm will continue to face headwinds from volatility in the commercial mortgage-backed securities (CMBS) market but remain profitable. We also expect that it will operate with lower credit risk given the recent sale of most of its floating rate loans on transitional properties, but that results will be more volatile given the increased reliance on gains on sale of loans originated for CMBS. We also expect the firm to remain in
