JP Morgan Chase woes prompt limited spread contagion

New York traders said this morning that credit protection costs for brokers Lehman and Goldman Sachs were unchanged, with Bank of America’s spreads only 1-2bp wider at 40/47bp.But the bank’s profit warning, along with a profit warning from Oracle, and the Federal Reserve reporting that the output of US factories, mines and utilities fell 0.3% in August – the first decline since December – dragged down US equity markets on Tuesday. Continued equity market fears caused credit derivatives sprea

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