Whale’s Trade in Comeback as Junk Fervor Fades

Nine months after the JPMorgan trader known as the London Whale amassed credit-derivatives bets that sparked $6 billion in losses for the bank, rivals from Bank of America to Morgan Stanley are recommending one of his main strategies.

Morgan Stanley analysts included among their top 13 trades for 2013 a bet that the cost of credit derivatives protecting against losses on junk bonds will get more expensive relative to investment-grade debt as sluggish growth fuels more corporate defaults.

To continue reading click here

Bloomberg BRIEF Newsletters