NewsNTech
Proprietary trading firms carry leverage as a structural operating condition, but debt sitting on the house balance sheet limits how aggressively the firm can shift capital into illiquid, long-duration bets.
Jane Street, the secretive trading firm, is in talks to move $11bn in debt to outside investors, including Pimco, through a private credit arrangement.
The reported purpose is to give the firm room to make further investments in artificial intelligence.
The balance sheet mechanics The private credit market offers borrowers flexible, negotiated terms outside the disclosure requirements that come with public bond issuance.
Keep reading