Rising rates a double-edged sword on Wall Street

[...]whipsawing commodity prices and widening spreads in the bond market sparked a $524mn loss in the trading division. [...]arguably most worryingly for investors accustomed to erratic swings in merger & acquisition mandates and trading activity - the rising chance of a recession and customer d...

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Bibliographic Details
Published in:Investors Chronicle 2022-04, p.14
Main Author: Newman, Alex
Format: Article
Language:English
Subjects:
Banking
COVID-19
Interest income
Interest rates
Net income
Pandemics
Recessions
Online Access:Get full text
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Summary:[...]whipsawing commodity prices and widening spreads in the bond market sparked a $524mn loss in the trading division. [...]arguably most worryingly for investors accustomed to erratic swings in merger & acquisition mandates and trading activity - the rising chance of a recession and customer debt defaults prompted JPMorgan to build a loan loss cushion, reflected in a $902mn jump in net credit reserves. The bank now expects net interest income to climb a fifth in the current quarter, thanks to rising interest rates and growth in both deposits and loans.
ISSN:0261-3115