In recent weeks, hedge funds and other investors have been puzzled by unusual movements in some credit markets, and have been buzzing about the identity of a deep-pocketed trader dubbed "the London whale."
That trader, according to people familiar with the matter, is a low-profile, French-born J.P. Morgan Chase & Co. employee named Bruno Michel Iksil. Iksil has taken large positions for the bank in insurance-like products called credit-default swaps. Lately, partly in reaction to market movements possibly resulting from Iksil's trades, some hedge funds and others have made heavy opposing bets, according to people close to the matter.
Those investors have been buying default protection on a basket of companies' bonds using an index of the credit-default swaps, or CDS. Iksil has been selling the protection, placing his own bet that the companies won't default.
How nice for Jamie Dimon, who has been bitching about too much regulation...
Find out more at http://online.wsj.com/article/SB10001424052702303299604577326031119412436.html?mod=wsj_share_tweet
No comments:
Post a Comment