The Whale trade of JP Morgan in 2012

Not many of you aware of the incident that took place in the month of April 2012 Bloomberg and Wall street journal made the headlines 813530JPMorgan Trader’s Positions Said to Distort Credit Indexes and ‘London Whale’ Rattles Debt Market.

Picking up from the CDX.NA.IG indices are composed of 125 North American corporate credits that are investment grade when the index begins trading understanding JP Morgan loss.Taking a position in the index allows traders to hedge or speculate. Going long means selling protection on the index in the expectation that the underlying company credits improve or at least do not default. Going short means buying protection on the index. The net notional value of the CDX.NA.IG.9 has surged from about $90bn at the start of the year to $150bn in April – indicating a big jump in trading. Continue reading “The Whale trade of JP Morgan in 2012”

2012 Most read post – The JP Morgan series

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Good morning last day of 2012 checking the mood of market well. This is the most news driven market we’ve had since the Greece story. You gotta be quick on your feet.

Thought of sharing the post that attained maximum readers on a day. It was May 11 2012 when the leading financial media broke the story on Thursday night about the $2bn trading loss on credit derivatives trading, which chief executive Jamie Dimon blamed on errors,sloppiness and bad judgement” and warned “could get worse”. 
Continue reading “2012 Most read post – The JP Morgan series”