JP has been ramping up its commodities business through the purchase of Bear Stearns and RBS Sempra this year. Nevertheless, Chan Bhima and team (ex-Merrill who moved across in 2009) bet on a decline in European coal prices and lost over $100m. Make big bets while you can - get rewarded if you win - else face a public harakiri.
RBS Sempra is an interesting addition to JP's commodity arsenal. They are active in natural gas fixed-for-floating swaps, basis and options. They are the largest non-producer trader of natural gas in North America.
JP also own Henry Bath, which is a metals and soft commodities warehousing company, registered in Liverpool in 1920, but founded in the 18th Century. Henry Bath, from whose name the company hails, found a copper trading business in 1794. Bath & Son developed trade with Chile, exporting coal and importing copper ore and sodium nitrates (Chilean or Peru saltpetre) which was used in fertilizer and gunpowder. The 1850s was the era of coffee-shop deals, which evolved formally into the London Metal Exchange, of which H. Bath was a founding member.
Blythe Masters is the illustrious Head of Commodities at JP Morgan and helped JP develop CDS in the 1990s.
RBS Sempra is an interesting addition to JP's commodity arsenal. They are active in natural gas fixed-for-floating swaps, basis and options. They are the largest non-producer trader of natural gas in North America.
JP also own Henry Bath, which is a metals and soft commodities warehousing company, registered in Liverpool in 1920, but founded in the 18th Century. Henry Bath, from whose name the company hails, found a copper trading business in 1794. Bath & Son developed trade with Chile, exporting coal and importing copper ore and sodium nitrates (Chilean or Peru saltpetre) which was used in fertilizer and gunpowder. The 1850s was the era of coffee-shop deals, which evolved formally into the London Metal Exchange, of which H. Bath was a founding member.
Blythe Masters is the illustrious Head of Commodities at JP Morgan and helped JP develop CDS in the 1990s.
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