Late yesterday, both Standard & Poor's and Fitch Ratings downgraded JP Morgan's debt rating. Fitch cited "the sustained weakness in the core operating performance" of a number of the bank's important businesses, as well as "challenging conditions" that "are expected to continue" as the rationale behind its downgrade.
Five-year senior credit default swaps for JP Morgan traded as high as 100bp-mid yesterday, up from 74bp-mid at close on Monday, according to credit derivatives brokers GFInet. The credit appeared on GFI’s ‘most active list’ for yesterday’s deals.
The week on Risk.net, July 7-13, 2018Receive this by email