• Fixed income in the investment banking division drove the results
JPMorgan said its investment bank net income came to $1.92 billion, up $1 billion from a year earlier as fixed income trading thrived.
JPMorgan said the percentage of credit card loans it wrote off as not being repayable in the third quarter reached 10.3 percent of its total portfolio. CFO Cavanagh said during a separate call with analysts that the card loss rate is expected to reach 10.5 percent in the first half of 2010 and could go higher depending on the unemployment rate.
My Takes
Fixed income trading will be the bright spot of financials in the near future and more write-ups of assets will be seen as the credit market eases. Off the top of my head, let's just toss a few names that might benefit from the trend. Among them BLK, BX,IVZ, JEF,GLG,KFN,RJF.
Disclaimer: Stocks/financial instruments mentioned in this blog are not to be taken as investment advice/recommendation. Readers must consult their own financial advisors and/or consider their own risk/reward profile before making investment/trading decisions. The blog author is not liable for any investment/trading decisions of readers should readers decide to base the decisions on information provided by the blog.
Disclosure: The blog author owns KFN but NOT other stocks mentioned above in her personal account as of October 14,2009
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