v3.26.3
Fair Value Disclosures
 9 Months Ended
Aug. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Note 5. Fair Value Disclosures
August 31, 2026 (1)
$ in thousandsLevel 1Level 2Level 3Counterparty and Cash Collateral Netting (2)Total
Assets:
Financial instruments owned:
Corporate equity securities$8,702,348 $245,591 $243,389 $— $9,191,328 
Corporate debt securities— 5,121,102 65,825 — 5,186,927 
Collateralized debt obligations and collateralized loan obligations— 716,390 92,164 — 808,554 
U.S. government and federal agency securities2,278,084 74,193 — — 2,352,277 
Municipal securities— 749,490 — — 749,490 
Sovereign obligations651,033 765,581 — — 1,416,614 
Residential mortgage-backed securities— 1,744,712 4,679 — 1,749,391 
Commercial mortgage-backed securities— 14,766 237 — 15,003 
Other asset-backed securities— 1,276,842 154,956 — 1,431,798 
Loans and other receivables— 1,734,057 98,321 — 1,832,378 
Derivatives1,435 5,003,437 19,926 (4,075,515)949,283 
Investments at fair value— 2,765 211,908 — 214,673 
Total financial instruments owned, excluding Investments at fair value based on NAV$11,632,900 $17,448,926 $891,405 $(4,075,515)$25,897,716 
Securities received as collateral$289,869 $— $— $— $289,869 
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$8,056,698 $35,002 $240 $— $8,091,940 
Corporate debt securities— 2,754,288 651 — 2,754,939 
U.S. government and federal agency securities1,318,879 4 — — 1,318,883 
Sovereign obligations841,077 728,494 — — 1,569,571 
Loans— 116,966 1,263 — 118,229 
Derivatives874 5,538,296 19,394 (4,316,137)1,242,427 
Total financial instruments sold, not yet purchased$10,217,528 $9,173,050 $21,548 $(4,316,137)$15,095,989 
Other secured financings$— $402,403 $10,718 $— $413,121 
Obligation to return securities received as collateral289,869 — — — 289,869 
Long-term debt— 2,920,617 1,021,303 — 3,941,920 
(1)Excludes investments at fair value based on net asset value (“NAV”) of $1.38 billion at August 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:
August 31, 2026
$ in thousandsFair Value (1)Unfunded CommitmentsRedemption FrequencyRedemption Notice Period
Hedge
Funds (2)		$642,298 $— 
Quarterly (43%)
Monthly (34%)
N/R (23%)
45 - 90 days
45 - 90 days
N/R
Private Equity Funds (3)64,535 20,218 
N/R (100%)
N/R
Credit
Funds (4)		347,405 28,396 
Quarterly (30%)
Monthly (4%)
N/R (66%)
90 days
30 days
N/R
Real Estate and Other Funds (5)330,679 78,245 
Quarterly (5%)
N/R (95%)
90 days
N/R
Total$1,384,917 $126,859 
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 August 31, 2026
$ in thousands
Balance at May 31, 2026
Total gains/losses (realized and unrealized) (1)PurchasesSalesSettlementsIssuancesNet transfers into/
(out of) Level 3
Balance at August 31, 2026
For instruments still held at
 August 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$255,866 $(9,752)$2,764 $(375)$— $— $(5,114)$243,389 $(9,729)$— 
Corporate debt securities54,811 1,520 10,578 (548)(440)— (96)65,825 1,738 — 
CDOs and CLOs62,546 (3,446)40,119 (7,263)— — 208 92,164 (1,705)— 
RMBS5,376 (283)— — (414)— — 4,679 (378)— 
CMBS235 2 — — — — — 237 2 — 
Other ABS190,089 (14,482)25,567 (588)(34,867)— (10,763)154,956 (9,577)— 
Loans and other receivables90,322 1,043 79,664 (61,237)(19,765)— 8,294 98,321 21,387 — 
Investments at fair value171,368 6,744 — (267)(40,337)— 74,400 211,908 4,946 — 
Level 3 liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$169 $(234)$— $— $— $— $305 $240 $76 $— 
Corporate debt securities571 96 — — — — (16)651 (96)— 
Loans1,352 207 (345)— — — 49 1,263 (504)— 
Net derivatives (2)13,541 59,419 — — (81,176)1,835 5,849 (532)22,715 — 
Other secured financings10,076 1,895 (120)— (1,133)— — 10,718 (1,967)— 
Long-term debt1,070,114 (19,476)— — (20,479)28,231 (37,087)1,021,303 27,097 (4,324)
Nine Months Ended August 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 August 31, 2026
For instruments still held at
August 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 $8,953 $27,447 $(6,684)$(103)$— $(5,077)$243,389 $9,088 $— 
Corporate debt securities37,578 2,686 32,482 (282)(1,501)— (5,138)65,825 1,640 — 
CDOs and CLOs40,187 (15,862)116,957 (28,426)(23)— (20,669)92,164 (10,243)— 
RMBS6,663 (800)— — (1,184)— — 4,679 (1,269)— 
CMBS348 (96)— — — — (15)237 (96)— 
Other ABS133,001 (82,710)165,628 (35,758)(45,205)— 20,000 154,956 (79,314)— 
Loans and other receivables127,720 25,149 126,248 (109,704)(28,554)— (42,538)98,321 26,928 — 
Investments at fair value163,107 10,281 9,475 (976)(44,379)— 74,400 211,908 8,006 — 
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$155 $(3,074)$(500)$— $— $— $3,659 $240 $3,430 $— 
Corporate debt securities3,720 374 (1,373)— — — (2,070)651 (339)— 
Loans9,757 (1,009)(697)725 — — (7,513)1,263 (1,207)— 
Net derivatives (2)35,642 56,151 (4,630)— (64,970)10,019 (32,744)(532)8,808 — 
Other secured financings13,454 1,535 — — (4,271)— — 10,718 (1,932)— 
Long-term debt1,063,358 (45,425)— — (44,174)64,312 (16,768)1,021,303 31,833 16,887 
(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 August 31, 2026
Transfers of assets of $101.7 million from Level 2 or NAV to Level 3 of the fair value hierarchy are primarily attributed to:
•Investments at fair value of $74.4 million, CDOs and CLOs of $14.1 million, Loan and other receivables of $8.6 million and Other ABS of $4.0 million due to reduced pricing transparency.
Transfers of assets of $34.8 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Other ABS of $14.8 million, CDOs and CLOs of $13.9 million and Corporate equity securities of $5.7 million due to greater pricing transparency supporting classification into Level 2.
Transfers of liabilities of $34.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $19.7 million and certain derivatives of $13.8 million due to reduced market and pricing transparency.
Transfers of liabilities of $64.9 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $56.8 million and certain derivatives of $8.0 million due to greater pricing and market transparency.
Net losses on Level 3 assets were $18.7 million and net losses on Level 3 liabilities were $41.9 million for the three months ended August 31, 2026. Net losses on Level 3 assets were primarily due to decreased market values across Other ABS, Corporate equity securities and CDOs and CLOs, partially offset by increased market values of Investments at fair value and Corporate debt securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain Derivatives and Other secured financings, partially offset by a decrease of structured notes within Long-term debt.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2026
Transfers of assets of $171.4 million from Level 2 or NAV to Level 3 of the fair value hierarchy are primarily attributed to:
•Investments at fair value of $74.4 million, Other ABS of $56.3 million, CDOs and CLOs of $31.7 million and Loan and other receivables of $8.4 million due to reduced pricing transparency.
Transfers of assets of $150.4 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•CDOs and CLOs of $52.4 million, Loans and other receivables of $50.9 million, Other ABS of $36.3 million, Corporate equity securities of $5.5 million and Corporate debt securities of $5.2 million due to greater pricing transparency supporting classification into Level 2.
Transfers of liabilities of $46.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $46.2 million due to pricing transparency.
Transfers of liabilities of $101.7 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $62.9 million, certain Derivatives of $29.3 million and Loans of $7.4 million due to greater pricing and market transparency.
Net losses on Level 3 assets were $52.4 million and net losses on Level 3 liabilities were $8.6 million for the nine months ended August 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, Investments at fair value, Corporate equity securities and Corporate debt securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain Derivatives and Other secured financings, partially offset by decreased market values of structured notes within Long-term debt, Corporate equity securities and loans.

Three Months Ended August 31, 2025
$ in thousands
Balance at May 31, 2025
Total gains/losses (realized and unrealized) (1)PurchasesSalesSettlementsIssuancesNet transfers into/
(out of) Level 3
Balance at August 31, 2025
For instruments still held at
August 31, 2025, changes in unrealized gains (losses) included in:
Earnings (1)Other comprehensive income
 (loss) (1)
Assets:
Financial instruments owned:
Corporate equity securities$231,160 $21,824 $20,785 $(1,487)$(788)$— $815 $272,309 $21,916 $— 
Corporate debt securities44,682 872 1,221 (788)— — (11,607)34,380 860 — 
CDOs and CLOs70,948 (3,654)20,718 (17,731)(3,463)— (14,509)52,309 (4,188)— 
RMBS7,947 46 — — (15)— — 7,978 50 — 
CMBS505 1 — — — — — 506 1 — 
Other ABS153,681 (2,589)23,586 (1,579)(2,888)— (44,036)126,175 (732)— 
Loans and other receivables92,168 3,213 65,988 (44,566)(16,129)— 39,248 139,922 4,862 — 
Investments at fair value153,379 10,308 1,000 (2,446)(741)— — 161,500 9,502 — 
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$161 $(312)$(1)$426 $— $— $522 $796 $309 $— 
Corporate debt securities644 126 (119)— (270)— 107 488 (117)— 
CMBS1,153 — — 35 — — — 1,188 — — 
Loans313 1,691 — — — — (38)1,966 (1,101)— 
Net derivatives (2)33,288 9,477 (533)719 (748)— (5,307)36,896 (9,313)— 
Other secured financings18,876 143 — — (2,905)— — 16,114 (255)— 
Long-term debt991,156 54,332 — — (2,050)29,155 (1,429)1,071,164 (7,342)(44,940)
Nine Months Ended August 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 August 31, 2025
For instruments still held at
August 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 $31,303 $28,748 $(8,940)$494 $— $(18,660)$272,309 $29,840 $— 
Corporate debt securities24,931 2,385 12,455 (1,168)(2,197)— (2,026)34,380 1,472 — 
CDOs and CLOs63,976 (14,474)69,479 (39,811)(10,013)— (16,848)52,309 (15,237)— 
Sovereign obligations172 2 — (174)— — — — — — 
RMBS7,714 315 — — (51)— — 7,978 331 — 
CMBS477 29 — — — — — 506 29 — 
Other ABS103,214 (2,792)60,151 (31,920)(8,089)— 5,611 126,175 (1,256)— 
Loans and other receivables152,586 (8,455)213,419 (196,921)(38,621)— 17,914 139,922 10,777 — 
Investments at fair value137,865 16,742 22,549 (2,446)(3,210)— (10,000)161,500 13,540 — 
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities$208 $(864)$(72,161)$73,148 $— $— $465 $796 $999 $— 
Corporate debt securities165 60 (280)351 192 — — 488 (90)— 
CMBS1,153 — — 105 — — (70)1,188 — — 
Loans16,864 (14,097)(875)74 — — — 1,966 (1,790)— 
Net derivatives (2)22,286 (11,263)(533)23,307 (1,166)— 4,265 36,896 2,447 — 
Other secured financings14,884 346 — — (7,647)8,531 — 16,114 (1,366)— 
Long-term debt821,903 32,255 — — (4,849)247,279 (25,424)1,071,164 (28,330)(3,925)
(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 August 31, 2025
Transfers of assets of $64.4 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Loan and other receivables of $43.5 million, CDOs and CLOs of $12.6 million and Other ABS of $6.7 million due to reduced pricing transparency.
Transfers of assets of $94.5 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Other ABS of $50.7 million, CDOs and CLOs of $27.1 million, Corporate debt securities of $12.3 million and Loans and other receivables of $4.3 million due to greater pricing transparency supporting classification into Level 2.
Transfers of liabilities of $16.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $13.1 million, partially offset by net derivatives transfer into Level 3 of $2.4 million due to reduced market and pricing transparency.
Transfers of liabilities of $22.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $14.5 million and Net derivatives of $7.7 million due to greater pricing and market transparency.
Net gains on Level 3 assets were $30.0 million and net losses on Level 3 liabilities were $65.5 million for the three months ended August 31, 2025. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities, Investments at fair value, Loans and other receivables and Other ABS, partially offset by decreased market values of CDOs and CLOs. Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt, certain derivatives and Loans.
Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2025
Transfers of assets of $99.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Loan and other receivables of $38.2 million, Corporate equity securities of $32.2 million, CDOs and CLOs of $18.6 million and Other ABS of $10.0 million due to reduced pricing transparency.
Transfers of assets of $123.5 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Corporate equity securities of $50.8 million, CDOs and CLOs of $35.4 million, Loans and other receivables of $20.3 million, Investments at fair value of $10.0 million, Other ABS of $4.4 million and Corporate debt securities of $2.5 million due to greater pricing transparency supporting classification into Level 2.
Transfers of liabilities of $21.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:
•Net derivatives of $13.4 million and structured notes within Long-term debt of $7.4 million due to reduced market and pricing transparency.
Transfers of liabilities of $42.1 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:
•Structured notes within Long-term debt of $32.8 million and certain Derivatives of $9.2 million due to greater pricing and market transparency.
Net gains on Level 3 assets were $25.1 million and net losses on Level 3 liabilities were $6.4 million for the nine months ended August 31, 2025. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities and Investments at fair value, partially offset by decreased valuations of CDOs and CLOs and Loans and other receivables. Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt, partially offset by decreased market values of 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.
August 31, 2026
Financial Instruments OwnedFair Value
(in thousands)		Valuation TechniqueSignificant Unobservable Input(s)Input / RangeWeighted
Average
Corporate equity securities$243,389 
Non-exchange-traded securitiesMarket approachPrice$0-$486$81
Volatility benchmarkingVolatility28%-32%31%
Corporate debt securities$65,825 Market approachPrice$67-$125$94
Discounted cash flowsDiscount rate/yield17%—
Scenario analysisEstimated recovery percentage6%—
CDOs and CLOs$69,063 Discounted cash flowsConstant prepayment rate15%-20%17%
Constant default rate2%—
Loss severity30%—
Discount rate/yield13%-16%14%
Market approachPrice$100-$116$107
RMBS$4,679 Discounted cash flowsConstant prepayment rate10%—
Constant default rate1%—
Loss severity50%—
Discount rate/yield15%—
Other ABS$144,953 Discounted cash flowsDiscount rate/yield15%-20%16%
Cumulative loss rate16%-17%16%
Duration (years)0.9-1.21.1
Market approachPrice$116-$136$131
Scenario analysisEstimated recovery percentage35%-41%36%
Loans and other receivables$98,321 Market approachPrice$4-$116$93
Scenario analysisEstimated recovery percentage6%-100%58%
Derivatives$17,242 
Equity optionsVolatility benchmarkingVolatility94%—
Discounted cash flowsBorrow rate4%-6%4%
Investments at fair value$211,908 
Private equity securitiesMarket approachPrice$0-$170,363$6,083
Discount rate/yield28%—
Estimated revenue$29,990,436—
Financial Instruments Sold, Not Yet Purchased:
Derivatives$19,394 
Equity optionsVolatility benchmarkingVolatility42%-94%74%
Interest rate swapsMarket approachBasis points upfront7-2415
Other secured financings$10,718 Scenario analysisEstimated recovery percentage29%-100%72%
Market approachPrice$120—
Long-term debt$1,021,303 
Structured notes Market approach Price$60-$119$98
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/yield16%—
Cumulative loss rate16%—
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 upfront0-2113
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 August 31, 2026 and November 30, 2025, asset exclusions consisted of $36.0 million and $28.2 million, respectively, primarily composed of CDOs and CLOs, Investments at fair value, certain derivatives, other ABS and CMBS. At August 31, 2026 and November 30, 2025, liability exclusions consisted of $2.2 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, certain derivatives 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 borrow rate, discount rate and 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
 August 31,		Nine Months Ended
 August 31,
$ in thousands2026202520262025
Financial instruments owned:
Loans and other receivables (1)$4,192 $(62,934)$(20,278)$(35,557)
Other secured financings (1)746 (2,908)6,537 (4,566)
Long-term debt:
Changes in instrument-specific credit risk (2)(6,721)(56,163)24,157 7,356 
Other changes in fair value (1)1,425 (58,429)(35,174)(27,159)
(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 thousandsAugust 31,
 2026		November 30,
 2025
Financial instruments owned:
Loans and other receivables (1)$1,413,248 $2,378,747 
Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1)436,361 319,394 
Loans and other receivables 90 days or greater past due (1)128,835 100,300 
Long-term debt232,646 166,273 
Other secured financings6,704 237 
(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 thousandsAugust 31,
 2026		November 30,
 2025
Financial instruments owned:
Loans and other receivables on nonaccrual status and/or 90 days or greater past due$128,462 $119,900 
Loans and other receivables 90 days or greater past due92,667 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 August 31, 2026 and November 30, 2025. There were no impairments or downward adjustments on these investments during both the three and nine months ended August 31, 2026 and 2025.