This article points out just how different JP Morgan’s (JPM) approach to credit risk is versus its competitors. Most of the large banks don’t have a CIO unit which attempts to hedge huge macroeconomic risks, and they certainly aren’t looking to do so using synthetic derivatives. JP Morgan will learn from this and is a screaming buy at current prices, but it is even more absurd how deeply its competitors have sold off when they didn’t incur these trading losses.
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