• better whale-human relationship


    Human-Whale Relations At JPMorgan Were Pretty Frosty

    Is JPMorgan too big to manage the quantity of public confusion about its operations? Maybe? […]

    / Jan 30, 2013 at 2:32 PM
  • I am not IN LOVE with the explanations here. Basically it seems like you read the lines (LHS) as performance of ETF and non-ETF IG bonds, and the bars (RHS) as the difference between them, which is fine as far as it goes, with the thing about "The plot shows year-to-date cumulative flows in IG" just being like a typo or something ... ?


    Bonds In ETFs Are Better Than Bonds That Aren’t In ETFs, Sort Of

    Coincidentally while I was noodling about bond indexes on Friday so was Goldman credit strategy […]

    / Sep 24, 2012 at 5:28 PM


    The CDX And The Whale

    The OCC report on bank derivative activities is rarely what you would call a laugh […]

    / Sep 21, 2012 at 1:29 PM
  • News

    You Say “Voldemort” Like That’s A Bad Thing

    Do you think that Bruno Iksil, when he woke up in Paris on Friday looking forward to trading from home in his black jeans, expected to become an international celebrity? The evidence suggests not. You may remember Iksil – possibly under other names like “Voldemort” or “the London Whale™” as the JPMorgan chief investment office trader who has sold protection on $100bn of notional of a CDX investment grade index to … hedge … JPMorgan’s massive short position in credit … or … something?* Anyway a lot of people are mad at him because that’s just too much protection to sell on that index and so they are complaining to Bloomberg and the Journal about how he is manipulating the market and also taking huge proprietary risks with JPMorgan capital that should obvs be regulated out of existence.

    This is weird in a lot of ways but one of them is that you can distill a lot of the Volcker-Rule complaints into “my God, you’re telling me that JPMorgan is exposed to $100bn of credit risk on investment-grade debt issued by a diverse mix of 121 U.S. companies!?” No! JPMorgan is exposed to something like $750bn of credit risk on debt issued by a diverse mix of companies. Some of it’s non-US. Some of it’s not even investment grade. And that’s just in its loan book.** Is writing $100bn of protection on the CDX.IG.NA.9 a terrible risk to take with investor and depositor and government-backstop money? Well, define “terrible risk.” It’s certainly less risky than operating the rest of JPMorgan.***

    / Apr 9, 2012 at 4:58 PM