Breadth of range, pioneering competence and service standards persuaded this year’s judges to name JPMorgan Credit Derivatives House of the Year. This is a market that has undergone its fastest rate of change in the last year with the establishment of indices and second generation products, like options and index tranches, as liquid market benchmarks.
Innovation is at the core of the JPMorgan message that impressed the judges. Its pioneering efforts include a proposed new asset class in structured credit, Managed Credit Synthetic Portfolio Insurance (SPI) - principal protected notes with exposure to long/short credit fund performance.
The product is a clever combination of recent developments in credit and principal protected notes, such as managed CSO tranches, a long/short strategy wrapped in a fund format and principal protection through SPI and highly rated collateral. And it offers multiple levels of active credit management: portfolio composition; combination and notional tranches; long or short position; and cash flows riskiness and timing.
According to Oldrich Masek, global co-head of structured credit at JPMorgan: “JPMorgan differentiates itself by being a leader in every segment of the credit market, both as an innovator and a top class liquidity provider. It is committed to developing the credit market in a robust framework and ensuring efficient market functioning during volatile and normal market conditions.”
