JP Morgan
Small buffer in a big market
JP Morgan issued a dual directional straddle product with a 10% buffer just over a year ago. Relying on nothing more than a slight fall in equity markets over the past 12 months has proved an easy way to erode capital
US bank fraud ring rumbled
Losses & Lawsuits
Banks repay $68bn in Tarp funds to US Treasury
Ten of the largest US financial institutions that have received public funds under the Troubled Assets Relief Program (Tarp) scheme are to pay back $68 billion after they were approved to reimburse the funds to the federal government yesterday.
Treasury silent on Tarp as banks submit $75bn SCAP capital plans
The 10 financial institutions identified as requiring additional capital under the US Treasury's Supervisory Capital Assessment Program (SCAP) economic stress tests have submitted plans describing how they intend to raise almost $75 billion in funds to…
US Wrap: RBC moots real estate rebound
Royal Bank of Canada has launched an accelerated growth note linking to the iShares Dow Jones US Real Estate Index. The bullish trade offers 300% participation in the index over only six months, up to a cap of 39%. It does not incorporate any downside…
US Wrap: JP Morgan launches kickout on gold equity fund
JP Morgan has unveiled a new autocallable note linked to the Market Vectors Gold Mining ETF. The 18-month investment will pay a coupon of 5.25-6.25% if the fund is at 100% of its initial level after three months. If not, the product will continue to its…
CDSs on European and US banks continue to widen
The cost of credit protection on financial institutions increased today across Europe and the US. The move came after the Bank of England's quarterly inflation report showed UK GDP growth was slower than expected in the first quarter of 2009 yesterday,…
European CDS dealers closer to restructuring solution
European derivatives dealers have agreed on a provisional framework to integrate restructuring as a credit event into the auction process for the cash settlement of credit default swaps (CDSs), taking the market a step closer to central clearing.
CDSs on US financials narrow
Market sentiment towards US banks improved today, with the cost of credit protection on six of the nation's largest financial institutions falling. The move came on the same day Bank of America (BoA) was reported to have raised $7.3 billion from selling…
CDSs on US banks widen
The cost of credit protection on US banks increased this morning, having fallen - in some cases by as much as 50 basis points - on Friday after the announcement of the US government's stress-test results last week.
Stress test results boost CDSs on financials
In early US trading on Friday, the cost of credit protection on financial institutions fell markedly following yesterday's publication of stress test results by the US government. In contrast to earlier pessimistic predictions - some of which had…
US banks require $74.6 billion in additional capital, stress tests reveal
Ten US banks collectively require an additional $74.6 billion in additional capital to insulate against possible losses over the next two years, the results of US government stress tests show.
CDSs on financials tighten on positive results
The cost of credit protection on European banks fell this morning ahead of the US government releasing the results of its stress tests on 19 US banks, helped by positive interim reports from UK banks.
Beyond compliance
Community-level emission reduction projects are in demand as compliance buyers diversify carbon offset portfolios and corporates seek out sustainable green projects. Voluntary and compliance market methodologies and pricing are therefore becoming…
CDSs on Australian financials widen
As National Australia Bank - Australia's largest bank by assets -predicted a grim economic outlook for the country, the cost of credit protection on Australian financials rose this morning.
CDSs on airlines widen on swine flu fears
The cost of credit protection on major airlines increased this morning, as fears mounted that tourism would decline due to the swine flu outbreak in Mexico.
Trading and technical gains outweigh loan losses in Q1
Strong trading results have offset large loan losses as banks report a mixed bag of first-quarter results.
CDSs on US banks tighten on JP Morgan profit
The cost of credit protection on major US banks fell yesterday in the wake of JP Morgan posting a first-quarter profit of $2.1 billion.
JP Morgan investment banking reports record profits
Today, JP Morgan reported that it earned $2.14 billion in the first quarter of 2009, a decline from the corresponding period last year when it saw a net income of $2.4 billion.
Encouraging US data helps CDSs on European banks narrow
Five-year senior credit default swap (CDS) spreads referencing European banks narrowed this morning. With JP Morgan announcing a first-quarter profit of $2.1 billion, market participants hoped for more encouraging news from the US.