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JP Morgan

Banks' own credit risk hampers financial results

Own credit risk - the concept of including the credit risk of an institution in the measurement of the liabilities it issues - had a significant impact on banks' profits in the first half of 2009, as credit default swap (CDS) spreads referencing banks'…

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 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…

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,…

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