Credit fears drive US banks’ IRC requirements to 2022 highs

- By Lorenzo Migliorato
- 11 Mar 2025

Several US dealers ended 2024 with incremental risk charges (IRC) for their trading books at the highest levels in two years, as widening credit spreads reflected investors’ unease in fixed income markets.

JP Morgan’s IRC – a measure of default and migration risk employed by eight US dealers with advanced risk models – reached $709 million on December 31, marking a 225% increase from end-September

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