
Here Is Why Markets Are Rallying
The Macro Trading Floor
JP Morgan's Prudent Risk Management and Interest Rate Sensitivity
JP Morgan has something even more interesting, which is they publish the interest rate sensitivity of their entire balance sheet. Back then, basically they told us that in 2022, with the Federal Reserve hiking rates by 400 plus basis points and the curve flattening, JP Morgan had lost about 10 billion in capital. So we're talking 4% of the entire capital of the bank, nothing to be honest, like a very small hit. They were very well prepared, much better regulated and much more prudent when it comes to the risk management.
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