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JPMorgan Losses Spark Frenzy in Swaps Indexes: Credit Markets

Signs are emerging that traders are already attempting to squeeze JPMorgan Chase & Co. after the biggest U.S. bank said it faced $2 billion in trading losses related to credit derivatives in the past six weeks.

The 10-year Markit CDX North America Investment Grade Index Series 9, an older, less-active benchmark for credit-default swaps created in 2007 in which JPMorgan trader Bruno Iksil in London was said to have amassed as much as a $100 billion position, jumped the most in almost eight months on May 11. Another index contract that takes more concentrated risks on the same companies recorded the biggest two-week surge in two years.