Wednesday, 31 August 2016
Last updated 2 hours ago
Jun 28 2012 | 3:29am ET
Another hedge fund is laying down the harpoon with which it speared JPMorgan Chase.
Hutchin Hill Capital has exited its credit-default swap trades betting against JPMorgan Chase's huge CDS index bets, trades that cost the bank at least $2 billion—although recent reports indicate the loss could be as much as $9 billion. Hutchin Hill is the second hedge fund that jumped on the opportunity offered by JPMorgan's so-called "London Whale," trader Bruno Iksil, known to have closed its positions.
Saba Capital Management was reported to have done so earlier this 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.