Photo: Wikimedia Commons
How do you undo $2 billion worth of damage?With help, apparently.
That’s what JP Morgan is getting from hedge fund BlueMountain — a hedge fund that initially pro fitted from being on the other side of the disastrous trades made in the bank’s London Chief Investment Office, Bloomberg reports.
See, the only thing that was certain when JP Morgan announced the $2 billion loss last month, was that they were going to have to unwind the vast and complicated trade fast.
More than that, it was certain that there were traders in the market that would make doing that very difficult for the bank.
Enter hedge fund BlueMountain LLC, founded by former JP Morgan executive, Andrew Feldstein. They started gathering trades in Series 9 of the Markit CDX North America Investment Grade Index recently, and then selling those positions back to JP Morgan.
Naturally, no one at JP Morgan or BlueMountain would comment on this matter. We probably wouldn’t either.
Business Insider Emails & Alerts
Site highlights each day to your inbox.