JPMorgan Losses Likely Increase as CDS NA.IG.9 Jumps this Week

JPMorgan Chase & Co. (NYSE:JPM) have been taking a huge hit from trading in a little known index based on Credit Default Swaps movements. The loss was announced by JPMorgan at $2 billion after Bruno Iksil began selling an enormous amount of protection on the index. The "London Whale", as Iksil is known, has since left the company.

The index in question, the Markit CDS NA IG 9 expiring in 2017, is so complex that even financial analysts argue about what exactly is going on and how JPMorgan managed to lose $2 billion on the...