Credit Liquidity Solutions

Lease Put

A variation of J.P. Morgan’s Receivable Put is the Lease Put which offers a tailor-made risk management solution to manage equipment lease exposure. The Lease Put hedge notional adjusts precisely with the estimated amount of the amortizing exposure (e.g., total exposure, total unsecured exposure, or damages claim exposure). In the event that a debtor files for bankruptcy and rejects the associated leases, companies can put their outstanding lease claims to J.P. Morgan at a pre-determined payout rate. The Lease Put is a more efficient credit risk mitigant than a static Credit Default Swap hedge, which result in clients either over-hedging or under-hedging their exposure at any point in time.

For Lease Put 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.

Liquidated Damages Put, protected by U.S. Patent No. 7,966,242. Lease Put (U.S. Patent pending).

 
 

Copyright © 2014 JPMorgan Chase & Co. All rights reserved.