v3.26.1
Fair Value Disclosures
 6 Months Ended
May 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Note 5. Fair Value Disclosures
May 31, 2026 (1)
$ in thousandsLevel 1Level 2Level 3Counterparty and Cash Collateral Netting (2)Total
Assets:
Financial instruments owned:
Corporate equity securities$8,172,828 $230,866 $255,866 $— $8,659,560 
Corporate debt securities— 5,211,023 54,811 — 5,265,834 
Collateralized debt obligations and collateralized loan obligations— 650,379 62,546 — 712,925 
U.S. government and federal agency securities3,112,195 106,914 — — 3,219,109 
Municipal securities— 649,349 — — 649,349 
Sovereign obligations807,151 886,209 — — 1,693,360 
Residential mortgage-backed securities— 1,906,714 5,376 — 1,912,090 
Commercial mortgage-backed securities— 9,768 235 — 10,003 
Other asset-backed securities— 780,516 190,089 — 970,605 
Loans and other receivables— 1,736,907 90,322 — 1,827,229 
Derivatives487 4,901,537 8,682 (3,475,770)1,434,936 
Investments at fair value— 5,268 171,368 — 176,636 
Total financial instruments owned, excluding Investments at fair value based on NAV$12,092,661 $17,075,450 $839,295 $(3,475,770)$26,531,636 
Securities received as collateral$310,813 $— $— $— $310,813 
​
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$7,243,037 $22,912 $169 $— $7,266,118 
Corporate debt securities— 3,026,509 571 — 3,027,080 
U.S. government and federal agency securities1,048,105 3 — — 1,048,108 
Sovereign obligations733,221 698,985 — — 1,432,206 
Residential mortgage-backed and other asset-backed securities— 9,000 — — 9,000 
Loans— 148,729 1,352 — 150,081 
Derivatives246 5,193,630 22,223 (3,601,670)1,614,429 
Total financial instruments sold, not yet purchased$9,024,609 $9,099,768 $24,315 $(3,601,670)$14,547,022 
Other secured financings$— $405,725 $10,076 $— $415,801 
Obligation to return securities received as collateral310,813 — — — 310,813 
Long-term debt— 2,790,159 1,070,114 — 3,860,273 
(1)Excludes investments at fair value based on net asset value (“NAV”) of $1.51 billion at May 31, 2026 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, 2025 (1)
$ in thousandsLevel 1Level 2Level 3Counterparty and Cash Collateral Netting (2)Total
Assets:
Financial instruments owned:
Corporate equity securities$7,664,824 $249,847 $218,853 $— $8,133,524 
Corporate debt securities— 5,367,201 37,578 — 5,404,779 
Collateralized debt obligations and collateralized loan obligations— 645,798 40,187 — 685,985 
U.S. government and federal agency securities2,342,718 106,633 — — 2,449,351 
Municipal securities— 563,994 — — 563,994 
Sovereign obligations860,832 815,722 — — 1,676,554 
Residential mortgage-backed securities— 1,827,092 6,663 — 1,833,755 
Commercial mortgage-backed securities— 10,458 348 — 10,806 
Other asset-backed securities— 909,474 133,001 — 1,042,475 
Loans and other receivables— 2,111,517 127,720 — 2,239,237 
Derivatives72 5,519,463 10,311 (3,705,764)1,824,082 
Investments at fair value— 13,567 163,107 — 176,674 
Total financial instruments owned, excluding Investments at fair value based on NAV$10,868,446 $18,140,766 $737,768 $(3,705,764)$26,041,216 
Securities received as collateral$200,495 $— $— $— $200,495 
​
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$5,571,534 $47,631 $155 $— $5,619,320 
Corporate debt securities— 2,761,794 3,720 — 2,765,514 
Collateralized debt obligations and collateralized loan obligations— 627 — — 627 
U.S. government and federal agency securities1,913,403 4 — — 1,913,407 
Sovereign obligations796,564 540,555 — — 1,337,119 
Loans— 184,391 9,757 — 194,148 
Derivatives24 5,429,227 45,953 (3,985,187)1,490,017 
Total financial instruments sold, not yet purchased$8,281,525 $8,964,229 $59,585 $(3,985,187)$13,320,152 
Other secured financings$— $412,510 $13,454 $— $425,964 
Obligation to return securities received as collateral 200,495 — — — 200,495 
Long-term debt— 2,671,485 1,063,358 — 3,734,843 
(1)Excludes investments at fair value based on NAV of $1.68 billion at November 30, 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.
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, 2025.
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, 2026
$ in thousandsFair Value (1)Unfunded CommitmentsRedemption FrequencyRedemption Notice Period
Hedge
Funds (2)		$725,883 $— 
Quarterly (37%)
Monthly (42%)
N/R (21%)
45 - 90 days
45 - 60 days
N/R
Private Equity Funds (3)65,920 22,990 
N/R (100%)
N/R
Credit
Funds (4)		435,715 23,847 
Quarterly (48%)
Monthly (3%)
N/R (49%)
90 days
30 days
N/R
Real Estate and Other Funds (5)278,961 103,610 
Quarterly (12%)
N/R (88%)
90 days
N/R
Total$1,506,479 $150,447 
November 30, 2025
$ in thousandsFair Value (1)Unfunded CommitmentsRedemption FrequencyRedemption Notice Period
Hedge
Funds (2)		$888,880 $— 
Quarterly (42%)
Monthly (41%)
N/R (17%)
45 - 90 days
45 - 60 days
N/R
Private Equity Funds (3)66,476 26,828 
N/R (100%)
N/R
Credit Funds (4)490,321 23,847 
Quarterly (56%)
Monthly (2%)
N/R (42%)
90 days
30 days
N/R
Real Estate and Other Funds (5)235,846 114,872 
Quarterly (19%)
N/R (81%)
90 days
N/R
Total$1,681,523 $165,547 
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 nine 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; and
•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 and investments in venture capital funds.


Level 3 Rollforwards
Three Months Ended May 31, 2026
$ in thousands
Balance at February 28, 2026
Total gains/losses (realized and unrealized) (1)PurchasesSalesSettlementsIssuancesNet transfers into/
(out of) Level 3
Balance at May 31, 2026
For instruments still held at
 May 31, 2026, changes in unrealized gains (losses) included in:
Earnings (1)Other comprehensive income
 (loss) (1)
Level 3 assets:
Financial instruments owned:
Corporate equity securities$218,483 $24,352 $14,242 $(4,487)$(103)$— $3,379 $255,866 $24,802 $— 
Corporate debt securities50,755 (184)4,717 (20)(432)— (25)54,811 267 — 
CDOs and CLOs61,455 (4,425)37,442 (4,026)— — (27,900)62,546 (4,703)— 
RMBS6,134 (443)— — (315)— — 5,376 (443)— 
CMBS355 (105)— — — — (15)235 (105)— 
Other ABS244,714 (22,349)25,936 (27,041)(7,345)— (23,826)190,089 (24,387)— 
Loans and other receivables85,396 18,797 25,427 (28,760)(7,607)— (2,931)90,322 21,162 — 
Investments at fair value167,195 (1,100)9,225 (685)(3,267)— — 171,368 (1,387)— 
Level 3 liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$167 $2 $— $— $— $— $— $169 $(2)$— 
Corporate debt securities555 — — — — — 16 571 — — 
Loans921 135 — 375 — — (79)1,352 (473)— 
Net derivatives (2)28,562 2,873 (821)— (4,485)— (12,588)13,541 (3,266)— 
Other secured financings11,685 (245)— — (1,364)— — 10,076 (72)— 
Long-term debt1,024,067 (6,329)— — — 29,344 23,032 1,070,114 40,009 (33,680)
Six Months Ended May 31, 2026
$ in thousands
Balance at November 30, 2025
Total gains/losses (realized and unrealized) (1)PurchasesSalesSettlementsIssuancesNet transfers into/
(out of) Level 3
Balance at May 31, 2026
For instruments still held at
May 31, 2026, changes in unrealized gains (losses) included in:
Earnings (1)Other comprehensive income
 (loss) (1)
Assets:
Financial instruments owned:
Corporate equity securities$218,853 $19,100 $25,895 $(7,026)$(103)$— $(853)$255,866 $19,153 $— 
Corporate debt securities37,578 1,110 14,323 — (1,061)— 2,861 54,811 1,518 — 
CDOs and CLOs40,187 (9,155)68,668 (15,658)(23)— (21,473)62,546 (7,648)— 
RMBS6,663 (522)— — (765)— — 5,376 (522)— 
CMBS348 (98)— — — — (15)235 (98)— 
Other ABS133,001 (67,663)139,191 (34,939)(10,264)— 30,763 190,089 (69,823)— 
Loans and other receivables127,720 22,225 76,044 (79,669)(8,345)— (47,653)90,322 23,736 — 
Investments at fair value163,107 3,536 9,475 (708)(4,042)— — 171,368 2,484 — 
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$155 $14 $— $— $— $— $— $169 $(14)$— 
Corporate debt securities3,720 181 — — — — (3,330)571 (232)— 
Loans9,757 (345)(697)1,100 — — (8,463)1,352 (1,805)— 
Net derivatives (2)35,642 2,518 (1,492)— (3,125)— (20,002)13,541 (3,494)— 
Other secured financings13,454 (360)— 120 (3,138)— — 10,076 36 — 
Long-term debt1,063,358 (25,949)— — (23,695)36,081 20,319 1,070,114 4,737 21,212 
(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, 2026
Transfers of assets of $20.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Loan and other receivables of $7.1 million, CDOs and CLOs of $5.0 million, Corporate equity securities of $4.3 million and Other ABS of $3.9 million due to reduced pricing transparency.
Transfers of assets of $71.6 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•CDOs and CLOs of $32.9 million, Other ABS of $27.7 million and Loans and other receivables of $10.0 million due to greater pricing transparency supporting classification into Level 2.
Transfers of liabilities of $40.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $31.3 million and Net derivatives transfers into Level 3 of $9.0 million due to reduced market and pricing transparency.
Transfers of liabilities of $30.0 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Net derivatives of $21.5 million and Structured notes within Long-term debt of $8.3 million due to greater pricing and market transparency.
Net gains on Level 3 assets were $14.5 million and net gains on Level 3 liabilities were $3.6 million for the three months ended May 31, 2026. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities and Loans and other receivables, partially offset by decreased market values of Other ABS, CDOs and CLOs and Investments at fair value. Net gains on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt, partially offset by increases of certain Derivatives.

Analysis of Level 3 Assets and Liabilities for the Six Months Ended May 31, 2026
Transfers of assets of $80.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Other ABS of $52.3 million, CDOs and CLOs of $17.0 million, Corporate debt securities of $8.1 million and Loan and other receivables of $3.3 million due to reduced pricing transparency.
Transfers of assets of $117.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Loans and other receivables of $50.9 million, CDOs and CLOs of $38.5 million, Other ABS of $21.6 million and Corporate debt securities of $5.2 million due to greater pricing transparency supporting classification into Level 2.
Transfers of liabilities of $36.1 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $26.4 million and Net derivatives of $9.6 million due to reduced market and pricing transparency.
Transfers of liabilities of $47.6 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Certain Derivatives of $29.6 million, Loans of $8.5 million and Structured notes within Long-term debt of $6.1 million due to greater pricing and market transparency.
Net losses on Level 3 assets were $31.5 million and net gains on Level 3 liabilities were $23.9 million for the six months ended May 31, 2026. Net losses on Level 3 assets were primarily due to decreased market values across Other ABS and CDOs and CLOs, partially offset by increases of Loans and other receivables, Corporate equity securities and Investments at fair value. Net gains on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt, partially offset by increased market values of certain Derivatives.

Three Months Ended May 31, 2025
$ in thousands
Balance at February 28, 2025
Total gains/losses (realized and unrealized) (1)PurchasesSalesSettlementsIssuancesNet 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$212,409 $8,245 $2,482 $(2,201)$— $— $10,225 $231,160 $5,003 $— 
Corporate debt securities25,925 2,547 18,805 (15,740)(2,177)— 15,322 44,682 2,194 — 
CDOs and CLOs71,827 (4,123)35,644 (18,469)(6,550)— (7,381)70,948 (4,564)— 
RMBS7,526 436 — — (15)— — 7,947 439 — 
CMBS471 34 — — — — — 505 34 — 
Other ABS147,319 6,814 27,523 (26,231)(1,863)— 119 153,681 5,985 — 
Loans and other receivables153,764 (7,236)18,008 (39,475)(13,063)— (19,830)92,168 (10,875)— 
Investments at fair value157,881 6,041 261 — (804)— (10,000)153,379 3,581 — 
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$590 $(256)$(173)$— $— $— $— $161 $31 $— 
Corporate debt securities1,113 222 (41,346)41,436 (662)— (119)644 (86)— 
RMBS15 (15)— — — — — — — — 
CMBS1,154 (1)— 35 — — (35)1,153 1 — 
Loans848 (658)(37)— 183 — (23)313 (226)— 
Net derivatives (2)42,076 (1,132)— — (4)— (7,652)33,288 (6,385)— 
Other secured financings12,705 — — — (2,360)8,531 — 18,876 — — 
Long-term debt860,684 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)PurchasesSalesSettlementsIssuancesNet 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 securities24,931 2,147 37,129 (23,787)(2,197)— 6,459 44,682 2,419 — 
CDOs and CLOs63,976 (10,286)52,875 (23,728)(6,550)— (5,339)70,948 (10,336)— 
Sovereign obligations172 2 — (174)— — — — — — 
RMBS7,714 269 — — (36)— — 7,947 279 — 
CMBS477 28 — — — — — 505 28 — 
Other ABS103,214 (264)86,866 (30,929)(4,175)— (1,031)153,681 (565)— 
Loans and other receivables152,586 (5,759)72,851 (82,603)(21,549)3,670 (27,028)92,168 (9,134)— 
Investments at fair value137,865 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 securities165 52 (135,198)135,433 — — 192 644 (123)— 
CMBS1,153 — — 35 — — (35)1,153 — — 
Loans16,864 (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 financings14,884 241 — — (4,780)8,531 — 18,876 (241)— 
Long-term debt821,903 (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 transfer 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.
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, 2026
Financial Instruments OwnedFair Value
(in thousands)		Valuation TechniqueSignificant Unobservable Input(s)Input / RangeWeighted
Average
Corporate equity securities$255,866 
Non-exchange-traded securitiesMarket approachPrice$0-$486$81
Volatility benchmarkingVolatility31%—
Corporate debt securities$54,811 Market approachPrice$67-$124$92
Discounted cash flowsDiscount rate/yield25%-30%26%
CDOs and CLOs$51,753 Discounted cash flowsConstant prepayment rate15%-20%18%
Constant default rate2%—
Loss severity30%—
Discount rate/yield12%-16%14%
Market approachPrice$100-$117$105
RMBS$5,376 Discounted cash flowsConstant prepayment rate10%—
Constant default rate0.5%—
Loss severity45%—
Discount rate/yield20%—
Other ABS$185,232 Discounted cash flowsDiscount rate/yield15.5%-16.1%15.9%
Cumulative loss rate16.2%-17.1%16.6%
Duration (years)1.1-1.21.2
Market approachPrice$117-$135$130
Scenario analysisEstimated recovery percentage56%-58%57%
Loans and other receivables$90,322 Market approachPrice$8-$117$103
Scenario analysisEstimated recovery percentage7%-100%76%
Derivatives$6,224 
Interest rate swapsMarket approachBasis points upfront0.2—
Investments at fair value$168,327 
Private equity securitiesMarket approachPrice$0-$170,363$7,711
Discount rate/yield28%—
Estimated revenue$30,087,431—
Financial Instruments Sold, Not Yet Purchased:
Derivatives$22,223 
Equity optionsVolatility benchmarkingVolatility53%—
Interest rate swapsMarket approachBasis points upfront6.9-22.213.9
Other secured financings$10,076 Scenario analysisEstimated recovery percentage74%-100%96%
Market approachPrice$117-$118$118
Long-term debt$1,070,114 
Structured notes Market approach Price$64-$120$99
November 30, 2025
Financial Instruments OwnedFair Value
(in thousands)		Valuation TechniqueSignificant Unobservable Input(s)Input / RangeWeighted
Average
Corporate equity securities$218,853 
Non-exchange-traded securitiesMarket approachPrice$0-$486$85
Volatility benchmarkingVolatility44%-48%47%
Corporate debt securities$37,578 Market approachPrice$49-$121$72
Discounted cash flowsDiscount rate/yield18%-20%19%
Scenario analysisEstimated recovery percentage30%—
CDOs and CLOs$25,824 Discounted cash flowsConstant prepayment rate20%—
Constant default rate2%—
Loss severity30%—
Discount rate/yield17%—
Market approachPrice$98-$100$99
RMBS$6,663 Discounted cash flowsConstant prepayment rate12%—
Constant default rate0.3%—
Loss severity20%—
Discount rate/yield15%—
Other ABS$129,693 Discounted cash flowsDiscount rate/yield15.5%-15.7%15.6%
Cumulative loss rate16.0%-16.4%16.2%
Duration (years)1.1-1.21.1
Market approachPrice$116-$133$130
Scenario analysisEstimated recovery percentage66%—
Loans and other receivables$127,720 Market approachPrice$67-$129$97
Scenario analysisEstimated recovery percentage8%-100%35%
Derivatives$6,094 
Embedded optionsMarket approachBasis points upfront0.4-0.50.5
Equity optionsVolatility benchmarkingVolatility34%—
Investments at fair value$157,162 
Private equity securitiesMarket approachPrice$0-$27,989$2,722
Discount rate/yield28%—
Estimated revenue$29,818,082—
Financial Instruments Sold, Not Yet Purchased:
Corporate debt securities$3,720 Scenario analysisEstimated recovery percentage30%—
Loans$9,757 Market approachPrice$100-$129$117
Scenario analysisEstimated recovery percentage30%—
Derivatives$45,953 
Equity optionsVolatility benchmarkingVolatility34%-61%58%
Embedded optionsMarket approachBasis points upfront0.0-21.013.3
Other secured financings$13,454 Scenario analysisEstimated recovery percentage74%-100%96%
Market approachPrice$114-$117$115
Long-term debt$1,063,358 
Structured notes Market approachPrice$72-$120$101
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, 2026 and November 30, 2025, asset exclusions consisted of $21.4 million and $28.2 million, respectively, primarily composed of CDOs and CLOs, Investments at fair value, certain derivatives, other ABS and CMBS. At May 31, 2026 and November 30, 2025, liability exclusions consisted of $2.1 million and $0.2 million, respectively, primarily composed of 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 and 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.
•Corporate debt securities, 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.
•Corporate equity securities and 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, 2025.
Fair value option gains (losses):
Three Months Ended
 May 31,		Six Months Ended
 May 31,
$ in thousands2026202520262025
Financial instruments owned:
Loans and other receivables (1)$8,506 $69,578 $(32,588)$103,854 
Other secured financings (1)6,100 (1,418)5,791 (1,659)
Long-term debt:
Changes in instrument-specific credit risk (2)(47,715)28,763 30,306 66,501 
Other changes in fair value (1)(1,226)13,225 (52,838)27,548 
(1)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.
Difference between contractual principal and fair value:
$ in thousandsMay 31,
 2026		November 30, 2025
Financial instruments owned:
Loans and other receivables (1)$1,392,673 $2,378,747 
Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1)416,067 319,394 
Loans and other receivables 90 days or greater past due (1)79,757 100,300 
Long-term debt203,199 166,273 
Other secured financings1,302 237 
(1)Interest income is recognized separately from other changes in fair value and is included in Interest revenues.
Fair value of loans and other receivables on nonaccrual status:
$ in thousandsMay 31,
 2026		November 30, 2025
Financial instruments owned:
Loans and other receivables on nonaccrual status and/or 90 days or greater past due$73,215 $119,900 
Loans and other receivables 90 days or greater past due53,157 47,000 
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, 2026 and November 30, 2025. There were no impairments or downward adjustments on these investments during both the three and six months ended May 31, 2026 and 2025.