No. of Recommendations: 1
Leucadia is a holding company for a bunch of different assets. Maybe 50% or so being a 100% ownership of Jefferies (investment bank).

JEF has a lot of debt (and files separate financials), but it's trading much tighter than LUK debt. I think both debt is money good, but actually think that LUK holdco debt is more protected.

Ratings are not good (bottom of IG), but I think that is wrong based on bad models from the ratings agencies (focus more on profit vs. asset value).

I have a large stake in the equity, and I find it really attractive, but for this forum, I think the debt is probably really interesting (I also own a tiny amount for savings / cash account for myself).

Here is a write up that is a bit stale (from me) which summarizes asset values (my take), but gives you a good take on history, etc.

'23 notes trade at 7.25%
'43 notes trade at 8.5%

In the last page of my link above, you can see what assets back the holdco (beyond the JEF stake) and you can determine whether you would agree with my view on security of these notes, but whether the idea is good or not, you can probably figure out if it's for you or not pretty quickly.


Ben - Long LUK
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