Credit Liquidity Solutions

Claims Monetization

CLS offers clients efficient solutions for monetizing and funding illiquid assets including: auction rate securities, bankruptcy claims monetization, private placements, and structured investment vehicles, among others.

J.P. Morgan’s Credit Trading desk provides liquidity for clients with claims against counterparties that have filed for bankruptcy. These claims take many forms including vendor trade claims, derivative counterparty claims, deficiency claims, and lease rejection claims, among others. As one of the largest market-makers in the bankruptcy claims space, J.P. Morgan is able to offer clients efficient solutions for monetizing what have historically been extremely illiquid assets. J.P. Morgan has extensive experience structuring these transactions in a manner that meets the individual priorities of creditors with respect to both pricing and execution.

During the credit crisis, access to liquidity became more difficult for many companies holding asset-backed and variable rate paper, as well as other distressed or less liquid assets. In the case of banks, certain clients were forced to reclassify short term investments, typically the most liquid, as longer term less liquid assets whose fair value was difficult to determine without observable market prices. As one of the largest market-makers in this space, J.P. Morgan’s CLS team is able to offer clients efficient solutions for monetizing and funding these assets, which include: asset backed commercial paper (ABCP), auction rate securities (ARS), credit linked notes, private placements, project finance, senior/subordinated debt, structured investment vehicles (SIVs), among others.

For claims monetization inquiries, please contact:

The information discussed herein is intended for sophisticated institutional clients. Vendor protection transactions and other credit risk tools mentioned above may not be suitable for all such persons. This information is not intended to provide accounting, legal, regulatory, credit, or tax advice, and prospective investors should contact their own accounting, legal, regulatory, credit, and tax advisors for additional information. J.P. Morgan assumes no responsibility or liability whatsoever to any person in respect of such matters. This material posted on this site is provided for information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any specific vendor protection product or other financial instrument. Information on this website is subject to change. J.P. Morgan endeavors to maintain the information as current and accurate but undertakes no duty to update information or to supply corrections. Clients should contact the individuals listed above for more information. This site has been published in the United States for residents of the United States only. This site is not intended for use by, or to provide any information to, investors outside of the United States, and such investors should not rely on any information or material appearing on the site.


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