Research Update: Jane Street Group LLC 'BB' Ratings Affirmed Following New Notes Issuance; Outlook Remains Positive

Jane Street Group LLC (JSG), a leading U.S.-based market-maker, has announced its intention to raise at least $1 billion in new notes, following $5.4 billion in long-term debt raised since January 2024. Although record revenues have added considerable equity since we revised the outlook to positive from stable in November 2024, risk-weighted assets have also increased at a faster pace, eroding the company's overall capital position. We continue to see positive momentum for credit, owing to JSG's increasing diversification, market share gains, funding and liquidity improvements, and a capital position that is still solid. We affirmed our ratings at 'BB'. The positive outlook reflects the possibility that we could raise the ratings in the next 12-18 months if we were

...- Jane Street Group LLC (JSG), a leading U.S.-based market-maker, has announced its intention to raise at least $1 billion in new notes, following $5.4 billion in long-term debt raised since January 2024. - Although record revenues have added considerable equity since we revised the outlook to positive from stable in November 2024, risk-weighted assets have also increased at a faster pace, eroding the company's overall capital position. - We continue to see positive momentum for credit, owing to JSG's increasing diversification, market share gains, funding and liquidity improvements, and a capital position that is still solid. - We affirmed our ratings at '##'. The positive outlook reflects the possibility that we could raise the ratings in the next 12-18 months if we were to believe the company is poised to appropriately manage its sizable risk appetite while sustaining lasting benefits from its enhanced scale and increased diversification....

Research Update