KBRA Affirms Ratings for Cantor Fitzgerald, L.P.

KBRA affirms the issuer and senior unsecured debt ratings of BBB for Cantor Fitzgerald, L.P. (“Cantor”, "CFLP", or “the firm”). Domiciled in New York, NY, Cantor is a privately held capital markets, investment banking, and asset management firm that wholly owns two SEC-registered broker-dealers and maintains controlling stakes in a publicly traded wholesale inter-dealer brokerage company and a CRE brokerage, capital markets and client services company. Principal subsidiaries include Cantor Fitzgerald & Co (“CF & Co.”), CF Secured, LLC (“CFS”), BGC Group, Inc. (“BGC”), Newmark Group, Inc. (“NMRK”), and Cantor Fitzgerald Asset Management (“CFAM”). The rating Outlook is Stable.

Key Credit Considerations

The ratings are underpinned by management’s long record of producing relatively steady operating results, adapting to business and market evolution and opportunity, emphasizing risk management, and maintaining consistent financial leverage and liquidity management practices. The ratings are further reinforced by the financial flexibility that comes from Cantor’s flow securities trading operations and agency inter-dealer and CRE brokerage businesses, together with mostly overnight repo lending that is supported by disciplined collateral margin requirements.

Consolidated profitability in 2025 was very strong, driven by several factors, predominately robust U.S. equity markets that propelled investment banking, equity trading, and synthetic (equity swaps) activities. The inter-dealer and CRE brokerage business also performed solidly in 2025, aided by product and client service business diversification.

Financial leverage continues to be maintained within a relatively tight range, reaching a cyclical low in 2025 due to the strong earnings performance and net capital raising efforts at CFLP (consolidated). KBRA continues to anticipate that financial leverage will be managed in the 5x range on a through-the-cycle basis.

Liquidity continues to benefit from the nature of the agency-like business activities, balance sheet flexibility, and ample unsecured, committed borrowing capacity. Collateral margin posting needs are tied to securities trading inventory and equity swaps and are typically well covered by internal financing efficiencies, liquidity sources, and partners’ capital.

Rating Sensitivities

Cantor’s ratings are well positioned at the current levels, reflective of the current strong financial performance in 2025. Conversely, although unlikely, a change in the firm’s stringent enterprise risk management policies and practices or liquidity management would pressure the ratings. A change in the revenue profile, which would be most likely to come from a secular dislocation in either the wholesale brokerage or CRE brokerage and financing business, would also cause the ratings to be evaluated.

To access ratings and relevant documents, click here.

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