The Trader 

Market Outlook: JP Morgan switches from loans to bonds

The Trader

Ironically for the US’s biggest bank, excess cash is being switched from lending it out to buying bonds. This is because of changes to the provisioning of these two different types of bank assets, which views bonds a safer than lending money. The buying bonanza has seen the banking giant’s bond portfolio increase by 50 per cent, according to the Financial Times. It also means than a lot of paper will be locked away until maturity and yet another layer of liquidity removed permanently.

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