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Thursday, October 10, 2013

JPMorgan Clients in Cash as Schwab’s Options Hedge Default

http://www.bloomberg.com/news/2013-10-10/jpmorgan-clients-in-cash-as-schwab-sees-options-hedging-default.html

With the deadline for avoiding a U.S. default looming, investors from Boston to Bangalore are moving to cash, extending the maturities of their short-term Treasury holdings and buying options to help protect themselves should stock and bond prices tumble.
Some JPMorgan Chase & Co. private bank clients are raising cash while others are dumping Treasury bills with maturities beyond the Oct. 17 debt ceiling deadline for longer-dated bonds. Stewart Capital Advisors LLC in Indiana, Pennsylvania, favors insurance companies, technology stocks and health-care providers, which now have lower valuations. Money is flowing out of an exchange-traded fund that tracks American banks and into overseas equities.

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