![McSqueezyTheCow's tweet photo. JPMorgan sold $705,607,000,000 of credit protection in the derivatives market in the six-month period ending June 30, 2023.
Of that amount, 92.08% were credit default swaps (CDS).
---
Real quick. What is a credit default swap (CDS)? Great question!
As defined by Investopedia, "A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults." A "credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage-backed securities (MBS), or corporate bonds".
Said another way, a CDS is insurance against a potential default.
--
Recall the infamous 'I'm jacked to the t*ts!' scene in the movie The Big Short where Ryan Gosling's character Jared Venett calls Steve Carell's character Mark Baum. Before uttering those words, Jared Vennet said:
"Well, nobody's buying CDO or mortgage bonds anymore, and everybody wants swaps. Swaps are now the most popular product on the street."
Well, JPMorgan is selling a lot of swaps.
"Shane. SHANE!"
---
Now that I have your attention again, let's quickly talk about JPMorgan.
..and derivatives! ...again.
---
Let's recall the two primary reasons why Jamie Dimon's bank relies so heavily on credit derivatives.
As a market maker,
"JPMorgan actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers".
As an end-user,
"JPMorgan uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm’s market-making businesses"
---
A little more on these credit derivatives, shall we??
As explained in JPMorgan's 2022 10-K:
"Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event."
---
So, let's go over the credit derivatives selling process, and the rationale behind JPMorgan selling $154.16 billion more credit default swaps in the first six months of 2023 than they did in the last six months of 2022.
• A third-party issuer has a debt; which has an inherent credit risk
• JPMorgan then says, 'hey, we can make credit derivatives"--based on the third party's debt--'and sell them to people'
• JPMorgan makes a market
• JPMorgan then sells credit protection for that risk associated with the third-party issuer to a buyer
*Recall that, by selling credit derivatives [protection], JPMorgan offsets their exposure to client derivatives, as they are used to hedge and/or manage risks*
By selling credit derivatives [protection], JPMorgan receives a premium for providing protection, while the buyer of credit protection is compensated when the issuer of the debt experiences a credit event, such as bankruptcy.
(Think of the scene in The Big Short where Michael Burry was going from bank to bank buying default swaps against the housing market.
In the same way, a buyer goes to JPMorgan and says, "Hey. I'd like to buy credit protection on that debt you guys have", then JPMorgan sells it to them, confident that a market event will not happen, but fully understanding that if and when a market event does happen, they will need to pay the buyer.
Additionally, by selling credit derivatives [protection], JPMorgan takes on the risk, as it is required to make payments on the derivatives contract when a credit event occurs.
Thus, the buyer (or "protection purchaser") is exposed to the creditworthiness of the protection seller. All this means is the buyer is "exposed", in that, their likelihood of being paid is only as strong as JPMorgan's ability to pay them.
---
TLDR:
JPMorgan likes credit derivatives. Like, a lot! And whether it is for market-making business or for their own hedging and risk mitigating purposes, the fact is that Jamie Dimon and his bank have increased the amount of credit protection they have sold by 30%, or $162.86 billion, to be more specific.
In selling credit protection, JPMorgan takes the upfront risk on protection they sell. In the first six months of the year, JPMorgan took on 31% more in risk related to credit protection sold than they did in the last six months of 2022.
<oof.gif>
---
JPMorgan is not okay!
---
#SystemicRisk #BankingCrisis #WallStreet #FinancialCrisis #MemeBank #JPMorgan #MarketMaker #Derivatives #CreditDefaultSwaps #TwitterNews
JPMorgan Form 10-Q For the quarterly period ended June 30, 2023: https://t.co/hB51Bm6I4Q
JPMorgan Form 10-K for the fiscal year ended December 31, 2022: https://t.co/9RSLX5pTfJ
Investopedia - Credit Default Swap:
https://t.co/gzIYtAtAwM](https://pbs.twimg.com/media/F6efu5VXYAAmYu6.jpg)
Olivia
Online
FIRE DD
@_Fire_DD
Joined March 2023
82 Following
449 Followers
180 Posts
Has anyone been able to get in contact with the FINRA office of the Ombudsman since Friday? I've been trying to get a comment on the shorted share discrepancy and I want to know what type of investigation did FINRA do that would give them a "considerably smaller" numbers compared to the NBH PR. Both Ombudsman phone numbers go straight to voicemail. No one has returned my call yet. #mmtlp
PETITION FOR CONGRESSIONAL REVIEW AND HEARING REGARDING MMTLP - Sign the Petition! https://t.co/MVUPm4T0Pm via @Change
🚨BREAKING NEWS: Elon Musk Sends Warning Klaus Schwab is A Real-Life Super Villain ⚠️
That's a lot of Helium. You need more?
Who to follow
DrewDiligence
@FreeCommercials
19+ Years in Real Estate/Free Markets. First to many block parties! Waiting for an accounting of that 20%. Wake up or they’ll throw dirt on you!
MARDÜK the 1-for-30 Panda💛 
@MetaGuyMarduk
🇨🇦Chef - Painter - Guitarist - Cat Dad - Deeptech investor
MMTLP = Making Markets Transparent, Legitimate & Principled
(watch the Collusion documentary⬇️)
Kostas
@ggkoul
I play old games, chase live music, and find joy in missing out.
Enjoy Real life vs Scroll life.
Broker-Dealers Can Be Held Primarily Liable For Failing To Fulfill Their “Gatekeeping Responsibilities” Of Monitoring Their Clients’ Trading Activities
Good Job Alan, Wes, and teams at both firms. Bodes well for all of the other cases including the potential case that $MMAT may file
https://t.co/9CeC0rHdeV
Excellent news
This is the second time Gary Gensler was asked about $MMTLP & Meta Materials publicly after the 15 member congressional inquiry
@cvpayne ask SEC commissioner Hester Peirce about MMTLP on April 17th, 2023 and she tells investors to contact the SEC
Gary Gensler stated he was aware of MMTLP on April 18th, 2023 with @anna_trades
15 Congress Members Have Requested MMTLP Update from SEC on July 28th, 2023
Finally, we have FOIA transcripts between the SEC and FINRA dating all the way back to November 29, 2021 about MMTLP and potential fraud
Why is @GaryGensler stonewalling, and acting confused about the matter #MMTLP? 🧵
$MMTLP thanks @RepRalphNorman for the questions and exposure on the $MMTLP situation. I can guarantee you he knows more than he is letting on here. Happy to work with your office on anything you may need in crafting your letter. BTW, he was disingenuous when he said the Audited Aggregated share count is a matter of public record, IT IS NOT! We have no idea how many longs existed in BDs on Dec. 8th, however, we do know that there were only supposed to be 165 million. The difference, if any, are all counterfeit!
Does Citadel have regulators in the pocket?
Retail investors & the companies don't have the blue sheet data, but @FINRA & the @SECGov does. After 9 months, if they found fraud from the company, would they keep it quiet? Instead we see that @GoldmanSachs & SG Americas, GTS' clearing brokers manipulate blue sheets. $MMTLP
You can add this Supeme Court case.
5th and 10th Amendment.
liability, and "thereby take her property without due process of law." 262 U.S. at 262 U. S. 486. The Court noted that a federal taxpayer's "interest in the moneys of the Treasury .
governmental infringement of individual rights protected by the Constitution."
https://t.co/YfpQ8hb0hY
@meshellb2022 @anna_trades 18 United States Code, Sections 1956 and 1957 (18 U.S.C. §§ 1956 and 1957).
If an entity 'well-in-the-know of the rules' violates 10 times & still allowed to carry on business - THIS IS WHAT HAPPENS - commit 50+ more violations.
It's so UNREGULATED!
https://t.co/CerEVWIHxw
Only people who think Citadel should be fined MORE or served JAIL TIME are allowed to LIKE this post 🚨👍
@SmokeyStock What’s funny is people claim company can find the issued share count. No one disagrees about that. The way counterfeiting works is not based off of issued shares, it’s based off IOUs NOT issued shares. For the company to request the issued share count is pointless.
JPMorgan sold $705,607,000,000 of credit protection in the derivatives market in the six-month period ending June 30, 2023.
Of that amount, 92.08% were credit default swaps (CDS).
---
Real quick. What is a credit default swap (CDS)? Great question!
As defined by Investopedia, "A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults." A "credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage-backed securities (MBS), or corporate bonds".
Said another way, a CDS is insurance against a potential default.
--
Recall the infamous 'I'm jacked to the t*ts!' scene in the movie The Big Short where Ryan Gosling's character Jared Venett calls Steve Carell's character Mark Baum. Before uttering those words, Jared Vennet said:
"Well, nobody's buying CDO or mortgage bonds anymore, and everybody wants swaps. Swaps are now the most popular product on the street."
Well, JPMorgan is selling a lot of swaps.
"Shane. SHANE!"
---
Now that I have your attention again, let's quickly talk about JPMorgan.
..and derivatives! ...again.
---
Let's recall the two primary reasons why Jamie Dimon's bank relies so heavily on credit derivatives.
As a market maker,
"JPMorgan actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers".
As an end-user,
"JPMorgan uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm’s market-making businesses"
---
A little more on these credit derivatives, shall we??
As explained in JPMorgan's 2022 10-K:
"Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event."
---
So, let's go over the credit derivatives selling process, and the rationale behind JPMorgan selling $154.16 billion more credit default swaps in the first six months of 2023 than they did in the last six months of 2022.
• A third-party issuer has a debt; which has an inherent credit risk
• JPMorgan then says, 'hey, we can make credit derivatives"--based on the third party's debt--'and sell them to people'
• JPMorgan makes a market
• JPMorgan then sells credit protection for that risk associated with the third-party issuer to a buyer
*Recall that, by selling credit derivatives [protection], JPMorgan offsets their exposure to client derivatives, as they are used to hedge and/or manage risks*
By selling credit derivatives [protection], JPMorgan receives a premium for providing protection, while the buyer of credit protection is compensated when the issuer of the debt experiences a credit event, such as bankruptcy.
(Think of the scene in The Big Short where Michael Burry was going from bank to bank buying default swaps against the housing market.
In the same way, a buyer goes to JPMorgan and says, "Hey. I'd like to buy credit protection on that debt you guys have", then JPMorgan sells it to them, confident that a market event will not happen, but fully understanding that if and when a market event does happen, they will need to pay the buyer.
Additionally, by selling credit derivatives [protection], JPMorgan takes on the risk, as it is required to make payments on the derivatives contract when a credit event occurs.
Thus, the buyer (or "protection purchaser") is exposed to the creditworthiness of the protection seller. All this means is the buyer is "exposed", in that, their likelihood of being paid is only as strong as JPMorgan's ability to pay them.
---
TLDR:
JPMorgan likes credit derivatives. Like, a lot! And whether it is for market-making business or for their own hedging and risk mitigating purposes, the fact is that Jamie Dimon and his bank have increased the amount of credit protection they have sold by 30%, or $162.86 billion, to be more specific.
In selling credit protection, JPMorgan takes the upfront risk on protection they sell. In the first six months of the year, JPMorgan took on 31% more in risk related to credit protection sold than they did in the last six months of 2022.
<oof.gif>
---
JPMorgan is not okay!
---
#SystemicRisk #BankingCrisis #WallStreet #FinancialCrisis #MemeBank #JPMorgan #MarketMaker #Derivatives #CreditDefaultSwaps #TwitterNews
JPMorgan Form 10-Q For the quarterly period ended June 30, 2023: https://t.co/hB51Bm6I4Q
JPMorgan Form 10-K for the fiscal year ended December 31, 2022: https://t.co/9RSLX5pTfJ
Investopedia - Credit Default Swap:
https://t.co/gzIYtAtAwM
![McSqueezyTheCow's tweet photo. JPMorgan sold $705,607,000,000 of credit protection in the derivatives market in the six-month period ending June 30, 2023.
Of that amount, 92.08% were credit default swaps (CDS).
---
Real quick. What is a credit default swap (CDS)? Great question!
As defined by Investopedia, "A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults." A "credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage-backed securities (MBS), or corporate bonds".
Said another way, a CDS is insurance against a potential default.
--
Recall the infamous 'I'm jacked to the t*ts!' scene in the movie The Big Short where Ryan Gosling's character Jared Venett calls Steve Carell's character Mark Baum. Before uttering those words, Jared Vennet said:
"Well, nobody's buying CDO or mortgage bonds anymore, and everybody wants swaps. Swaps are now the most popular product on the street."
Well, JPMorgan is selling a lot of swaps.
"Shane. SHANE!"
---
Now that I have your attention again, let's quickly talk about JPMorgan.
..and derivatives! ...again.
---
Let's recall the two primary reasons why Jamie Dimon's bank relies so heavily on credit derivatives.
As a market maker,
"JPMorgan actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers".
As an end-user,
"JPMorgan uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm’s market-making businesses"
---
A little more on these credit derivatives, shall we??
As explained in JPMorgan's 2022 10-K:
"Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event."
---
So, let's go over the credit derivatives selling process, and the rationale behind JPMorgan selling $154.16 billion more credit default swaps in the first six months of 2023 than they did in the last six months of 2022.
• A third-party issuer has a debt; which has an inherent credit risk
• JPMorgan then says, 'hey, we can make credit derivatives"--based on the third party's debt--'and sell them to people'
• JPMorgan makes a market
• JPMorgan then sells credit protection for that risk associated with the third-party issuer to a buyer
*Recall that, by selling credit derivatives [protection], JPMorgan offsets their exposure to client derivatives, as they are used to hedge and/or manage risks*
By selling credit derivatives [protection], JPMorgan receives a premium for providing protection, while the buyer of credit protection is compensated when the issuer of the debt experiences a credit event, such as bankruptcy.
(Think of the scene in The Big Short where Michael Burry was going from bank to bank buying default swaps against the housing market.
In the same way, a buyer goes to JPMorgan and says, "Hey. I'd like to buy credit protection on that debt you guys have", then JPMorgan sells it to them, confident that a market event will not happen, but fully understanding that if and when a market event does happen, they will need to pay the buyer.
Additionally, by selling credit derivatives [protection], JPMorgan takes on the risk, as it is required to make payments on the derivatives contract when a credit event occurs.
Thus, the buyer (or "protection purchaser") is exposed to the creditworthiness of the protection seller. All this means is the buyer is "exposed", in that, their likelihood of being paid is only as strong as JPMorgan's ability to pay them.
---
TLDR:
JPMorgan likes credit derivatives. Like, a lot! And whether it is for market-making business or for their own hedging and risk mitigating purposes, the fact is that Jamie Dimon and his bank have increased the amount of credit protection they have sold by 30%, or $162.86 billion, to be more specific.
In selling credit protection, JPMorgan takes the upfront risk on protection they sell. In the first six months of the year, JPMorgan took on 31% more in risk related to credit protection sold than they did in the last six months of 2022.
<oof.gif>
---
JPMorgan is not okay!
---
#SystemicRisk #BankingCrisis #WallStreet #FinancialCrisis #MemeBank #JPMorgan #MarketMaker #Derivatives #CreditDefaultSwaps #TwitterNews
JPMorgan Form 10-Q For the quarterly period ended June 30, 2023: https://t.co/hB51Bm6I4Q
JPMorgan Form 10-K for the fiscal year ended December 31, 2022: https://t.co/9RSLX5pTfJ
Investopedia - Credit Default Swap:
https://t.co/gzIYtAtAwM](https://pbs.twimg.com/media/F6efu9KWkAAJtcq.jpg)
Seems to me it proves FTDs and FTRs
$MMTLP Survey Results are in! For in-depth analysis watch this video, otherwise you can view the data at the link below. Thanks to everyone that participated. What results do you find the most surprising? https://t.co/jXi3T3PYLT Survey results are not financial advice.
Dougies Proprietary Traders can literally FRONT RUN its customers it’s pays for order flow from Robinhood and Webull.
So they can see peoples orders on Virtu Americas then trade against them via Virtu Financial
It’s all right there
@Dougielarge you think it’s funny?
Attorneys from IEX and the SEC have exposed Citadel and Virtu's fraudulent business models, echoing their statements from October 25, 2021:
"Citadel and Virtu do exactly the same thing."
"Latency arbitrage, it's 100% true"
"Retail investors are just a red herring."
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