Friday, 25 July 2014
Last updated 15 min ago
Jun 27 2012 | 12:01pm ET
One of the hedge funds that harpooned JPMorgan Chase's London Whale has exited the trades that turned it a big profit and saddled the bank with a huge loss.
Saba Capital Management has closed the credit-default swap index trades it opened after noticing the dislocations caused by the huge trades made by JPMorgan's Bruno Iksil. Saba, which has $5 billion in assets, wasn't the only hedge fund to jump on that opportunity—which cost JPMorgan at least $2 billion—but media reports, including an extended analysis in The New York Times—gave Saba and founder Boaz Weinstein much of the credit.
It is unclear how large Saba's exposure was or how much it made. The firm has returned 2.3% this year through last week.
Another of the hedge funds that profited from JPMorgan's predicament, BlueMountain Capital Management, has been engaged by the bank to help it unwind the disastrous derivatives trades.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…