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Fair Value Disclosures

3 Months Ended

Feb. 29, 2024

The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value (“NAV”) of $1.25 billion and $1.21 billion at February 29, 2024 and November 30, 2023, respectively, by level within the fair value hierarchy (in thousands):


	February 29, 2024
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)		Total
Assets:
Financial instruments owned:
Corporate equity securities	$	5,507,909	$	340,379	$	173,214	$	—	$	6,021,502
Corporate debt securities	—		5,809,579		35,335		—		5,844,914
Collateralized debt obligations and collateralized loan obligations	—		782,391		69,367		—		851,758
U.S. government and federal agency securities	2,990,863		107,066		—		—		3,097,929
Municipal securities	—		275,217		—		—		275,217
Sovereign obligations	887,739		651,353		—		—		1,539,092
Residential mortgage-backed securities	—		1,448,311		684		—		1,448,995
Commercial mortgage-backed securities	—		318,198		473		—		318,671
Other asset-backed securities	—		140,520		102,256		—		242,776
Loans and other receivables	—		1,429,594		78,885		—		1,508,479
Derivatives	310		2,898,300		7,019		(2,213,583)		692,046
Investments at fair value	—		6		121,764		—		121,770
Total financial instruments owned, excluding Investments at fair value based on NAV	$	9,386,821	$	14,200,914	$	588,997	$	(2,213,583)	$	21,963,149
Securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	$	126,340	$	—	$	—	$	—	$	126,340
Securities received as collateral	110,897		—		—		—		110,897

Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	2,954,918	$	86,820	$	675	$	—	$	3,042,413
Corporate debt securities	—		3,631,375		124		—		3,631,499
Collateralized debt obligations and collateralized loan obligations	—		672		—		—		672
U.S. government and federal agency securities	2,348,603		—		—		—		2,348,603

Sovereign obligations	1,091,150		614,857		—		—		1,706,007

Commercial mortgage-backed securities	—		—		944		—		944
Loans	—		86,293		1,466		—		87,759
Derivatives	390		3,133,838		59,108		(1,967,283)		1,226,053
Total financial instruments sold, not yet purchased	$	6,395,061	$	7,553,855	$	62,317	$	(1,967,283)	$	12,043,950

Other secured financings	$	—	$	—	$	3,965	$	—	$	3,965
Obligation to return securities received as collateral	110,897		—		—		—		110,897
Long-term debt	—		972,243		779,529		—		1,751,772

(1)Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.


	November 30, 2023 (1)
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (2)		Total
Assets:
Financial instruments owned:
Corporate equity securities	$	3,831,698	$	211,182	$	181,294	$	—	$	4,224,174
Corporate debt securities	—		4,921,222		26,112		—		4,947,334
Collateralized debt obligations and collateralized loan obligations	—		869,246		64,862		—		934,108
U.S. government and federal agency securities	3,563,164		65,566		—		—		3,628,730
Municipal securities	—		223,502		—		—		223,502
Sovereign obligations	1,051,494		609,452		—		—		1,660,946
Residential mortgage-backed securities	—		2,048,309		20,871		—		2,069,180
Commercial mortgage-backed securities	—		344,902		508		—		345,410
Other asset-backed securities	—		255,048		117,661		—		372,709
Loans and other receivables	—		1,320,217		130,101		—		1,450,318
Derivatives	314		3,649,814		8,336		(3,107,620)		550,844
Investments at fair value	—		—		130,835		—		130,835
Total financial instruments owned, excluding Investments at fair value based on NAV	$	8,446,670	$	14,518,460	$	680,580	$	(3,107,620)	$	20,538,090
Securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	$	110,198	$	—	$	—	$	—	$	110,198
Securities received as collateral	8,800		—		—		—		8,800

Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	2,235,049	$	83,180	$	676	$	—	$	2,318,905
Corporate debt securities	—		2,842,776		124		—		2,842,900
Collateralized debt obligations and collateralized loan obligations	—		36		—		—		36
U.S. government and federal agency securities	2,957,787		—		—		—		2,957,787
Sovereign obligations	1,229,795		579,302		—		—		1,809,097
Residential mortgage-backed securities	—		463		—		—		463
Commercial mortgage-backed securities	—		—		840		—		840
Loans	—		173,828		1,521		—		175,349
Derivatives	54		3,851,004		59,291		(2,764,572)		1,145,777
Total financial instruments sold, not yet purchased	$	6,422,685	$	7,530,589	$	62,452	$	(2,764,572)	$	11,251,154

Other secured financings	$	—	$	—	$	3,898	$	—	$	3,898
Obligation to return securities received as collateral	8,800		—		—		—		8,800
Long-term debt	—		963,846		744,597		—		1,708,443

(1)Excludes amounts for financial instruments reclassified to Assets held for sale and Liabilities held for sale. Refer to Note 5, Assets Held for Sale and Discontinued Operations for further information.

(2)Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.

For a description of the valuation basis, including 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, 2023.

Investments at Fair Value

Investments at fair value includes investments in hedge funds and private equity 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.

The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands):


	February 29, 2024
	Fair Value (1)		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Equity Long/Short Hedge Funds (2)	$	316,630	$	—	Quarterly (64%) Monthly (36%)	60 - 90 days 60 days
Equity Funds (3)	50,224		36,468		N/R (100%)	N/R
Commodity Funds (4)	20,964		—		Quarterly (100%)	60 days
Multi-asset Funds (5)	349,971		—		Monthly (83%) Quarterly (14%) N/R (3%)	60 days 90 days N/R
Other Funds (6)	510,608		131,985		Quarterly (65%) N/R (35%)	90 days N/R
Total	$	1,248,397	$	168,453


	November 30, 2023
	Fair Value (1)		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Equity Long/Short Hedge Funds (2)	$	341,530	$	—	Quarterly (57%) N/R (43%)	60 - 90 days N/R
Equity Funds (3)	55,701		37,534		N/R (100%)	N/R
Commodity Funds (4)	21,747		—		Quarterly (100%)	60 days
Multi-asset Funds (5)	357,445		—		Monthly (83%) Quarterly (13%) N/R (4%)	60 days 90 days N/R
Other Funds (6)	432,960		132,662		Quarterly (75%) N/R (25%)	90 days N/R
Total	$	1,209,383	$	170,196

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. The investments that cannot be redeemed at November 30, 2023, are not redeemable because these investments include restrictions that do not allow for redemption before November 30, 2023 or August 31, 2025.

(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 eleven years.

(4)Includes investments in a hedge fund that invests, long and short, primarily in commodities.

(5)Includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. The investments that cannot be redeemed at February 29, 2024 and November 30, 2023 are not redeemable because these investments include restrictions that do not allow for redemption before April 1, 2024.

(6)Primarily includes investments in a fund that invests in short-term trade receivables and payables that are expected to generally be outstanding between 90 to 120 days and short-term credit instruments, as well as investments in a fund that invests, long and short, in distressed and special situations credit strategies across sectors and asset types.

Level 3 Rollforwards

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended February 29, 2024 (in thousands):


	Three Months Ended February 29, 2024
	Balance at November 30, 2023		Total gains/losses (realized and unrealized) (1)		Purchases		Sales		Settlements		Issuances		Net transfers into/ (out of) Level 3		Balance at February 29, 2024		For instruments still held at February 29, 2024, changes in unrealized gains (losses) included in:
																	Earnings (1)		Other comprehensive income (loss) (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	181,294	$	(197)	$	167	$	(265)	$	—	$	—	$	(7,785)	$	173,214	$	(158)	$	—
Corporate debt securities	26,112		846		20,437		(513)		(200)		—		(11,347)		35,335		801		—
CDOs and CLOs	64,862		11,121		16,997		(13,836)		(9,539)		—		(238)		69,367		1,355		—


RMBS	20,871		(202)		—		—		(5,360)		—		(14,625)		684		32		—
CMBS	508		(35)		—		—		—		—		—		473		(64)		—
Other ABS	117,661		(3,165)		11,686		(17,650)		(5,834)		—		(442)		102,256		(1,468)		—
Loans and other receivables	130,101		(15,592)		5,477		(24,382)		(3,007)		—		(13,712)		78,885		(17,991)		—
Investments at fair value	130,835		(10,691)		1,627		—		—		—		(7)		121,764		(10,691)		—
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	676	$	(7)	$	—	$	6	$	—	$	—	$	—	$	675	$	7	$	—
Corporate debt securities	124		—		—		—		—		—		—		124		—		—


CMBS	840		—		(245)		350		—		—		(1)		944		—		—
Loans	1,521		(54)		(81)		—		—		—		80		1,466		(183)		—
Net derivatives (2)	50,955		(4,833)		—		245		—		—		5,722		52,089		4,340		—
Other secured financings	3,898		4,482		—		—		(4,415)		—		—		3,965		(4,482)		—
Long-term debt	744,597		12,284		—		—		—		21,456		1,192		779,529		(14,477)		2,193

(1)Realized and unrealized gains/losses are primarily reported in Principal transactions revenues in our Consolidated Statements of Earnings. 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 February 29, 2024

During the three months ended February 29, 2024, transfers of assets of $11.2 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

•Loan and other receivables of $6.5 million, Other ABS of $1.7 million, Corporate debt securities of $1.7 million and Corporate equity securities of $1.3 million due to reduced pricing transparency.

During the three months ended February 29, 2024, transfers of assets of $59.4 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:

•Loans and other receivables of $20.2 million, RMBS of $14.6 million, Corporate debt securities of $13.0 million, Corporate equity securities of $9.1 million and Other ABS of $2.2 million due to greater pricing transparency supporting classification into Level 2.

During the three months ended February 29, 2024, transfers of liabilities of $31.6 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

•Structured notes within Long-term debt of $16.1 million and Net derivatives of $15.4 million due to reduced market and pricing transparency.

During the three months ended February 29, 2024, transfers of liabilities of $24.6 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:

•Structured notes within Long-term debt of $14.9 million and Net derivatives of $9.7 million due to greater pricing and market transparency.

Net losses on Level 3 assets were $17.9 million and net losses on Level 3 liabilities were $11.9 million for the three months ended February 29, 2024. Net losses on Level 3 assets were primarily due to decreased market values across Loans and other receivables, Investments at fair value and Other ABS, partially offset by increased valuations of CDOs and CLOs. Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt and Other secured financings, partially offset by decreases in certain derivatives.


	Three Months Ended February 28, 2023
	Balance at November 30, 2022		Total gains/losses (realized and unrealized) (1)		Purchases		Sales		Settlements		Issuances		Net transfers into/ (out of) Level 3		Balance at February 28, 2023		For instruments still held at February 28, 2023, changes in unrealized gains (losses) included in:
																	Earnings (1)		Other comprehensive income (loss) (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	240,347	$	17,688	$	—	$	(297)	$	—	$	—	$	3,896	$	261,634	$	17,648	$	—
Corporate debt securities	30,232		(1,715)		3,147		(7,305)		(200)		—		17,634		41,793		(1,834)		—
CDOs and CLOs	55,824		4,810		36,441		(15,666)		(8,971)		—		—		72,438		(2,985)		—


RMBS	27,617		(3,605)		—		—		(25)		—		—		23,987		(2,868)		—
CMBS	839		(353)		—		—		—		—		—		486		(356)		—
Other ABS	94,677		(2,940)		13,740		—		(5,959)		—		910		100,428		(1,716)		—
Loans and other receivables	168,875		446		3,267		(10,160)		(8)		—		(13,747)		148,673		38		—
Investments at fair value	161,992		(2,636)		5,637		(2,420)		(4,710)		—		—		157,863		(2,636)		—

Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	750	$	(135)	$	—	$	13	$	—	$	—	$	—	$	628	$	135	$	—
Corporate debt securities	500		(28)		(187)		—		—		—		—		285		28		—

CMBS	490		—		—		35		—		—		—		525		525		—
Loans	3,164		120		(211)		—		—		—		(28)		3,045		(199)		—
Net derivatives (2)	59,524		9,713		—		127		(537)		—		18,504		87,331		(10,352)		—
Other secured financings	1,712		—		—		—		—		—		—		1,712		—		—
Long-term debt	661,123		19,877		—		—		—		203		2,495		683,698		15,593		(35,470)

(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 February 28, 2023

During the three months ended February 28, 2023, transfers of assets of $39.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

•Corporate debt securities of $17.7 million, Loans and other receivables of $13.9 million, Corporate equity securities of $4.3 million and Other ABS of $3.9 million due to reduced pricing transparency.

During the three months ended February 28, 2023, transfers of assets of $31.1 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:

•Loans and other receivables of $27.7 million and Other ABS of $3.0 million due to greater pricing transparency supporting classification into Level 2.

During the three months ended February 28, 2023, transfers of liabilities of $58.2 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

•Net derivatives of $34.1 million and structured notes within Long-term debt of $24.1 million due to reduced market and pricing transparency.

During the three months ended February 28, 2023, transfers of liabilities of $37.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to:

•Structured notes within Long-term debt of $21.6 million and net derivatives of $15.6 million due to greater pricing and market transparency.

Net gains on Level 3 assets were $11.7 million and net losses on Level 3 liabilities were $29.5 million for the three months ended February 28, 2023. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities and CDOs and CLOs, partially offset by decreases in RMBS, Other ABS, Investments at fair value and Corporate debt securities. Net losses on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt and certain derivatives.

Quantitative Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements at February 29, 2024 and November 30, 2023

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 with 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.


February 29, 2024
Financial Instruments Owned:	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range				Weighted Average
Corporate equity securities	$	173,214
Non-exchange-traded securities			Market approach	Price	$0		-	$325	$61
Corporate debt securities	$	35,335	Scenario analysis	Estimated recovery percentage	4%				—
			Market approach	Price	$42		-	$102	$85
CDOs and CLOs	$	54,253	Discounted cash flows	Constant prepayment rate	20%				—
				Constant default rate	2%				—
				Loss severity	30%				—
				Discount rate/yield	13	%	-	23%	19%
			Market approach	Price	$51		-	$106	$92






Other ABS	$	88,370	Discounted cash flows	Discount rate/yield	9	%	-	20%	17%
				Cumulative loss rate	9	%	-	32%	26%
				Duration (years)	0.9		-	2.2	1.7
			Market approach	Price	$100				—
Loans and other receivables	$	73,810	Market approach	Price	$34		-	$125	$84

			Scenario analysis	Estimated recovery percentage	7	%	-	100%	66%
Derivatives	$	3,393

Equity options			Volatility benchmarking	Volatility	64.5				—
Investments at fair value	$	117,620
Private equity securities			Market approach	Price	$1		-	$7,760	$565
				Discount rate/yield	28%				—
				Revenue	$30,393,087				—
Financial Instruments Sold, Not Yet Purchased:


Corporate debt securities	$	124	Scenario analysis	Estimated recovery percentage	4%				—



Derivatives	$	57,337
Equity options			Volatility benchmarking	Volatility	31.8		-	112.5	47.6
Embedded options			Market approach	Basis points upfront	0.2		-	24.3	16.2

Other secured financings	$	3,965	Scenario analysis	Estimated recovery percentage	60	%	-	100%	93%
Long-term debt	$	779,529
Structured notes			Market approach	Price	$58		-	$117	$83
				Price	€65		-	€105	€87


November 30, 2023
Financial Instruments Owned:	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range				Weighted Average
Corporate equity securities	$	181,294
Non-exchange-traded securities			Market approach	Price	$0		-	$325	$59
Corporate debt securities	$	26,112	Market approach	Price	$40		-	$94	$50
			Discounted cash flows	Discount rate/yield	11%				—
			Scenario analysis	Estimated recovery percentage	4%				—
CDOs and CLOs	$	64,862	Discounted cash flows	Constant prepayment rate	15	%	-	20%	19%
				Constant default rate	2%				—
				Loss severity	35	%	-	40%	36%
				Discount rate/yield	21	%	-	26%	24%
			Market approach	Price	$48		-	$100	$88





CMBS	$	508	Scenario analysis	Estimated recovery percentage	28%				—
Other ABS	$	102,423	Discounted cash flows	Discount rate/yield	10	%	-	21%	18%



				Cumulative loss rate	9	%	-	32%	25%
				Duration (years)	1.1		-	2.2	1.7
			Market approach	Price	$100				—
Loans and other receivables	$	130,101	Market approach	Price	$82		-	$157	$127
			Scenario analysis	Estimated recovery percentage	7	%	-	73%	40%
Derivatives	$	2,395
Equity options			Volatility benchmarking	Volatility	60%				—


Investments at fair value	$	127,237
Private equity securities			Market approach	Price	$1		-	$6,819	$484
				Discount rate/yield	28%				—
				Revenue	$30,538,979				—
Financial Instruments Sold, Not Yet Purchased:


Corporate debt securities	$	124	Scenario analysis	Estimated recovery percentage	4%				—
Loans	$	1,521	Market approach	Price	$101				—

Derivatives	$	56,779
Equity options			Volatility benchmarking	Volatility	31	%	-	87%	42%
Embedded options			Market approach	Basis points upfront	0.4		-	25.5	17.9

Other secured financings	$	3,898	Scenario analysis	Estimated recovery percentage	18	%	-	73%	53%
Long-term debt	$	744,597
Structured notes			Market approach	Price	$57		-	$114	$78
				Price	€60		-	€103	€84

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 February 29, 2024 and November 30, 2023, asset exclusions consisted of $43.0 million and $45.6 million, respectively, primarily comprised of CDOs and CLOs, Other ABS, Loans and other receivables, Investments at Fair Value, certain derivatives, RMBS and CMBS. At February 29, 2024 and November 30, 2023, liability exclusions consisted of $4.9 million and $4.0 million, respectively, primarily comprised of certain derivatives, loans, CMBS and corporate equity 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 and structured notes using a market approach valuation technique. A significant increase (decrease) in the price of the private equity securities, non-exchange-traded securities, corporate debt securities, CDOs and CLOs, other ABS, loans and other receivables or structured notes would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the 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.

•Loans and other receivables, corporate debt securities, CMBS and other secured financings using scenario analysis. A significant increase (decrease) in the possible recovery rates of the cash flow outcomes underlying the financial instrument would result in a significantly higher (lower) fair value measurement for the financial instrument.

•CDOs and CLOs, corporate debt securities and other ABS using a discounted cash flow 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.

•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 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, 2023.

The following is a summary of gains (losses) due to changes in fair value related to instrument-specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on Long-term debt measured at fair value under the fair value option (in thousands):


	Three Months Ended
	February 29, 2024		February 28, 2023
Financial instruments owned:
Loans and other receivables	$	(7,410)	$	7,454






Other secured financings:
Other changes in fair value (2)	$	(4,482)	$	—
Long-term debt:
Changes in instrument-specific credit risk (1)	$	(3,980)	$	(71,660)
Other changes in fair value (2)	(43,817)		45,825

(1)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.

(2)Other changes in fair value are included in Principal transactions revenues in our Consolidated Statements of Earnings.

The following is a summary of the amounts by which contractual principal is greater than (less than) fair value for loans and other receivables, Other secured financings and Long-term debt measured at fair value under the fair value option (in thousands):


	February 29, 2024		November 30, 2023
Financial instruments owned:
Loans and other receivables (1)	$	1,975,612	$	2,344,468
Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2)	253,784		259,354
Long-term debt	248,547		294,256
Other secured financings	459		1,377

(1)Interest income is recognized separately from other changes in fair value and is included in Interest revenues in our Consolidated Statements of Earnings.

(2)Amounts include loans and other receivables 90 days or greater past due by which contractual principal exceeds fair value of $146.8 million and $187.4 million at February 29, 2024 and November 30, 2023, respectively.

The aggregate fair value of loans and other receivables on nonaccrual status and/or 90 days or greater past due was $67.3 million and $98.1 million at February 29, 2024 and November 30, 2023, respectively, which includes loans and other receivables 90 days or greater past due of $54.0 million and $37.6 million at February 29, 2024 and November 30, 2023, respectively.

Assets Measured at Fair Value on a Non-recurring Basis

Certain assets were measured at fair value on a non-recurring basis and are not included in the tables above. Impairment losses for the three months ended February 28, 2023 attributable to an equity method investment were $22.1 million and were recognized in Other revenues in our Consolidated Statements of Earnings. The assets of the equity method investment were included within the Asset Management reportable business segment. At November 30, 2023, the equity method investment had a fair value of zero and would be categorized within Level 3 of the fair value hierarchy. Fair value at February 29, 2024 was based on our best estimate of what could be recognized in a sale transaction for the investment.

During the three months ended February 29, 2024, our shares in Monashee, an equity method investment, were converted to a newly created class of nonmarketable preferred shares. Our equity method investment was remeasured to a fair value of $21.9 million in connection with its nonmonetary exchange into the preferred shares.

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 in our Consolidated Statements of Financial Condition and were $21.9 million and 0.0 million at February 29, 2024 and November 30, 2023, respectively. Net losses of $33.2 million were recognized on these investments during the three months ended February 28, 2023. There were no impairments on these investments during the three months ended February 29, 2024 and February 28, 2023.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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