The Clap
JPMorgan’s (NYSE: JPM) senior management has ordered its teams around the world to reassess their exposure to commodities following last month’s Nickel chaos.
The deets
According to a Bloomberg report, JPMorgan had already been reviewing its exposure to commodities even before Nickel went berserk. The review is focused on base metals (copper, tin, zinc, etc.), & businesses related to trading on the London Metal Exchange (LME).
Why this matters
JPMorgan is one of the biggest investors in global commodities. Commodity markets have already seen significant drops in liquidity due to high prices & volatility. While it’s still unclear what JPMorgan could decide, a move to scale back investments in commodity markets would hurt liquidity even further & put pressure on them.
