Tuesday, May 15, 2012

The Squeeze on JPMorgan's Whale Trade Begins

The squeeze on JPMorgan is in play.

 The CDX IG 9 short that JPMorgan's London whale, Bruno Iksil, has to unwind is climbing in price.

NYT reports that as of Monday, 10-year protection sold on a certain amount of the index through 2017 cost about $147,000, up from roughly $119,000 two weeks ago, according to the data provider Markit, an increase of 24%.

Ouch! That's how you beach a whale.

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