In response to information published today, Jefferies clarified information relating to its sovereign-debt positions and its interest-income expense. To be clear, as of August 31, 2011, Jefferies had no meaningful net exposure to European sovereign debt. Recent reports and calculations appear to have been focusing only on long inventory of $2.684 billion but not taking into account the fact that there were offsetting short positions in such sovereign debt of $2.545 billion as well as offsetting positions in futures instruments. It should be noted that, as of today's opening of business, Jefferies' net exposure to the ... (full story)