JPMorgan Credit Swaps Show Bank’s Record Profits Fail to Impress
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Record earnings from JPMorgan Chase & Co. failed to improve its creditworthiness in the eyes of swaps traders, as reduced provisions for bad mortgages accounted for almost half of its profit.
Credit-default swaps on the second-biggest U.S. bank by assets, which investors use to hedge against losses or to speculate on creditworthiness, climbed 0.2 basis point to 71.7 basis points, according to CMA.