my research indicates that jpm most likely has some leveraged exposure to european corporate credit through itraxx 9 related cds's. this exposure i think may be tens of billions and leveraged in the sense that it is to a specific tranche of the cds, meaning a small increase in defaults could wipe out the exposure at risk.
this is based on notional interest expansion in related ig9 and itraxx9 cds's, and also my own estimate that $2 billion of losses could not happen related to ig9 alone. also dimon mentioned the problem is "global."
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my daily motivational reading, what the high and mighty penny pumpers say about luv:
"any knowledge you currently have about trading, finance, accounting, etc... that i don't, are things i can fully absorb within a relatively short period of time if its really important to do so... on the other hand, i am quite certain that you are incapable of grasping even 20% of the knowledge i've gained in math, associated algorithmic coding, physical chemistry, solid-state physics, materials science and engineering over decades of study."
"There are those who market trades, and there are those who trade markets.
There are those who follow marketers, and those who follow markets.
The marketers feast on their followers; the traders feast on the markets." -luvb2b
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