Leveraged & Structured Finance Driven by historically high levels of capital inflow, the high yield market improved dramatically in 2003. Taking advantage of the strong high yield new issue environment, we completed more than 40 high yield debt offerings
for clients. Jefferies’ creative approach to structure, superior execution, substantial capital base and integrated, one-firm approach maximized value to our issuers and institutional relationships.

Highlights for 2003 included lead- or sole-managing offerings for Ship Finance International, Sweetheart Cup, Leucadia National, NationsRent Companies, Majestic Star Casino, Morton’s Restaurant Group, and Barneys, among others. While successfully demonstrating our powerful distribution capabilities to manage several large offerings, Jefferies also maintained its market leadership in high yield new issues under $150 million, particularly for companies issuing high yield debt for the first time.

Working closely with Jefferies' industry banking groups and high yield trading desk to identify and execute transactions, our Structured Finance Group provides advisory and placement services to our clients with regard to their asset securitization needs. A notable achievement of 2003 was the closing of the $200 million Jackson Creek CDO, which is managed by Jefferies' asset management staff together with David L. Babson & Company, Inc., and is invested in a diversified portfolio of high yield bonds one of the few deals completed in this sector during the year.