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Posts Tagged ‘CDX NA IG 9’

JP Morgan’s Concentration Risk and Outsized Egos

Posted by Larry Doyle on May 15th, 2012 8:38 AM |

How does one firm “lose” $2 billion…and likely more….in the course of less than two months?

Well, it is doable if there is a massive market move. In the case of JP Morgan and the loss it announced last week, though, the markets broadly speaking had not moved that significantly. Certainly nothing like we experienced during the middle of 2011, let alone 2008. So the question begs, how does a firm lose that amount of money?

Concentration risk combined with another factor. What might that be? Let’s navigate.¬† (more…)






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