Solid and improving franchise. Moderate risk profile. Highly variable cost structure. Reliance on wholesale funding. Key-man risk. Growth focus. Partnership capital structure with limited retention of earnings. Standard & Poor's Ratings Services' rating on Cantor Fitzgerald L.P. (Cantor) is based on the company's solid and improving franchise as a midtier institutional securities firm, its good financial profile highlighted by a highly variable cost structure, moderate risk profile, and adequate capital. However, the wholesale nature of Cantor's funding structure, its partnership structure, and its fairly aggressive expansion plans are negatives for the rating. Cantor has built a strong franchise serving clients in debt and equity capital markets, and a premier global interdealer brokerage businessBGC Partners Inc. (in part publicly owned). Cantor's...
Companies mentioned in this report are:
- Cantor Fitzgerald L.P.
- BGC Partners Inc.
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