Frontrunning: April 6

  • More on JPM's uber-prop trader Bruno Iskil - 'London Whale' Rattles Debt Market (WSJ):
    • "Mr. Iksil has done so much bullish trading that he has helped move the index, traders say. Now, even as Mr. Iksil is selling credit protection on the company index, a number of hedge funds and other investors are buying protection on it."
    • Some investors say they are betting that Mr. Iksil could have to exit some of his bullish trades, perhaps because the pending Volcker rule limiting bank risk-taking would push up the cost of credit protection. J.P. Morgan has said the Volcker rule doesn't prohibit its CIO unit from investing or hedging activities.
    • One person familiar with the matter said the bank has run tests that show Mr. Iksil's positions likely will be profitable in any economic or market downturn.
    • A sign of how hot the trade is: The net "notional" volume in the index ballooned to $144.6 billion on March 30 from $92.6 billion at the start of the year, according to Depository Trust & Clearing Corp. data.
  • Traders Eye 45-Minute Window After Good Friday Report (Bloomberg)
  • Sky News admits hacking of emails (FT)
  • Britain’s Economy Barely Grew in First Quarter, Niesr Estimates (Bloomberg)
  • Olbermann sues Current TV for $50M, cites glitches (USAToday), full lawsuit here
  • Morgan Stanley broadens clawback rules (FT)
  • Swiss Franc Showdown Looms as Jordan Defends SNB Ceiling (Bloomberg)
  • Key Democratic donors cool to pro-Obama Super PAC (Reuters)
  • Investors' Prying Eyes Blinded by New Law (WSJ)
  • U.S. not backing off as Iran sanctions bite (Reuters)


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