Bloomberg News reports that some of the biggest wagers included shorting Japan’s currency and betting that U.S. interest rates would rise more steeply than those in Europe, according to Daniel Pinto, head of the firm’s corporate and investment bank.
'Neither of those trades paid', Pinto, 51, said at an investor conference in New York. 'Essentially you start the year with the wrong momentum, where you lose money at the very beginning, and you ended up with probably a lower risk appetite than you would have otherwise'.
JPMorgan warned investors earlier this month that second-quarter markets revenue will probably drop about 20 percent from a year earlier, after a 21% tumble in fixed-income, currencies and commodities trading in the first quarter. That would amount to JPMorgan’s worst first half for trading since the financial crisis.
Another reason for the lacklustre results is reduced volatility, which has dropped to the lowest in 10 to 15 years for rates, currencies and credit trading, Pinto said.
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