Call of the Day: JPMorgan Chase
Mike Mayo, managing director and head of US large-cap bank research at Wells Fargo Securities, says JPMorgan could be the first trillion dollar market cap bank. It's our Call of the Day.
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Wall Street's $500M Gold Heist: How Top Banks Exploited a Rare Market Glitch
Wall Street's commodity traders just pulled off a classic playbook moveand it paid handsomely. In Q1 2025, top banks including JPMorgan (NYSE:JPM) and Morgan Stanley hauled in around $500 million in revenue from precious metals trading, according to data from Crisil Coalition Greenwich. That figure is nearly double their decade-long quarterly average and ranks as one of the highest in ten years. What sparked the surge? An unusual arbitrage opportunity: gold and silver prices on the US Comex exchange shot above those in global hubs like London and Hong Kong. That gap opened the door for traders to buy low overseas and deliver into US futures contracts at a premium, just as fears over incoming tariffs on bullion hit the market. Morgan Stanley delivered 67 metric tons of gold to settle its proprietary Comex positionsthe most of any bankvalued at roughly $7 billion based on current prices. JPMorgan wasn't far behind, moving more than $4 billion worth of gold to settle February futures in one of the largest delivery days on record. The flurry of activity began to cool in April after the US government clarified that bullion would be exempt from President Donald Trump's proposed tariffs. But the damageor rather, the profitwas done. Much like in 2020, when the pandemic disrupted logistics and created another arbitrage window, banks with the operational muscle to execute physical trades found themselves in the driver's seat. For investors, this quarter may offer more than just impressive P&Ls. It's a reminder of how quickly geopolitical uncertainty can reshape commodity marketsand create asymmetric opportunities for the players who move fast. While the window may have closed for now, the surge in physical deliveries highlights how nimble trading desks are still thriving in old-school ways. As tariff talk, election noise, and macro shocks swirl around global markets, don't be surprised if this isn't the last time physical arbitrage drives headlinesand results. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Wall Street's $500M Gold Heist: How Top Banks Exploited a Rare Market Glitch
Wall Street's commodity traders just pulled off a classic playbook moveand it paid handsomely. In Q1 2025, top banks including JPMorgan (NYSE:JPM) and Morgan Stanley hauled in around $500 million in revenue from precious metals trading, according to data from Crisil Coalition Greenwich. That figure is nearly double their decade-long quarterly average and ranks as one of the highest in ten years. What sparked the surge? An unusual arbitrage opportunity: gold and silver prices on the US Comex exchange shot above those in global hubs like London and Hong Kong. That gap opened the door for traders to buy low overseas and deliver into US futures contracts at a premium, just as fears over incoming tariffs on bullion hit the market. Morgan Stanley delivered 67 metric tons of gold to settle its proprietary Comex positionsthe most of any bankvalued at roughly $7 billion based on current prices. JPMorgan wasn't far behind, moving more than $4 billion worth of gold to settle February futures in one of the largest delivery days on record. The flurry of activity began to cool in April after the US government clarified that bullion would be exempt from President Donald Trump's proposed tariffs. But the damageor rather, the profitwas done. Much like in 2020, when the pandemic disrupted logistics and created another arbitrage window, banks with the operational muscle to execute physical trades found themselves in the driver's seat. For investors, this quarter may offer more than just impressive P&Ls. It's a reminder of how quickly geopolitical uncertainty can reshape commodity marketsand create asymmetric opportunities for the players who move fast. While the window may have closed for now, the surge in physical deliveries highlights how nimble trading desks are still thriving in old-school ways. As tariff talk, election noise, and macro shocks swirl around global markets, don't be surprised if this isn't the last time physical arbitrage drives headlinesand results. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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JPMorgan Lifts 2025 Muni-Bond Sales Forecast to $560 Billion
(Bloomberg) -- JPMorgan Chase & Co. raised its forecast for 2025 municipal bond issuance by 14% as state and local governments step up borrowing efforts. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Senator Calls for Closing Troubled ICE Detention Facility in New Mexico The bank's muni strategists led by Peter DeGroot lifted their full-year issuance prediction to $560 billion from $490 billion, according to a research report published Friday. Almost all of the sales, $510 billion, is expected to be tax-exempt — up from an earlier projection of $450 billion and about 30% higher than the trailing five-year average. The revision comes 'in advance of potential policy limiting the authorization to issue tax-exempts in certain sectors of the market, pent up need for capital, and the cumulative impact of inflation on funding needs across the market,' the strategists wrote in the report. JPMorgan is the third-largest underwriter of muni bonds so far this year, according to data compiled by Bloomberg. States and local governments sold $20 billion of debt last week, the most since the end of 2017, according to data compiled by Bloomberg, as pandemic-era stimulus aid wanes and inflation drives up the cost of projects. So far this year, California has issued the most muni bonds, followed by New York, according to the report. States such as Indiana, Nebraska, Ohio, Colorado and Connecticut that tend to issue bonds at a lower volume saw increases in debt sales of more than 80%. While the higher education, airport and health care sectors saw an increased pace of muni-bond sales in the first half of the year, JPMorgan strategists expect a slowdown, 'assuming the GOP's reconciliation bill continues to leave the tax-exemption off the list of budget cuts.' The industry has been on edge with the possibility of muni-bonds losing their tax-exempt status as lawmakers look to raise revenue to offset the costs of the Trump administration's tax cuts. --With assistance from Amanda Albright. The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again New Grads Join Worst Entry-Level Job Market in Years What America's Pizza Economy Is Telling Us About the Real One America Cast Itself as the World's Moral Leader. Not Anymore ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
