What derivatives in particular have been causing these huge losses? I understand... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

cluda01 on June 28, 2012 | parent | context | favorite | on: JPMorgan Trading Loss May Reach $9 Billion

What derivatives in particular have been causing these huge losses? I understand they had to do with speculation on the creditworthiness of some entity but hadn't seen a full explanation.

superprime on June 28, 2012 | [–]

Here is an explanation from Matt Levine: http://dealbreaker.com/2012/05/the-tale-of-a-whale-of-a-fail... .

And one from Lisa Pollack: http://ftalphaville.ft.com/blog/2012/05/11/996131/too-big-to... .

The understanding is that the JPM CIO was writing protection on CDX.IG.NA.9, a synthetic credit default index.

Consider applying for YC's Fall 2026 batch! Applications are open till July 27.
Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact