CLS offers clients efficient solutions for monetizing and financing illiquid credit assets including: auction rate securities, bankruptcy claims, secondary private placements, and structured investment vehicles, among others.
J.P. Morgan’s Credit Trading desk provides liquidity for companies 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 participants in the bankruptcy claims market, J.P. Morgan is able to offer companies 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 needs 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 companies 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 companies efficient solutions for monetizing and funding these assets, which include: asset backed commercial paper (ABCP), auction rate securities (ARS), credit linked notes, secondary private placements, project finance debt, senior/subordinated debt, and structured investment vehicles (SIVs), among others.