JP Morgan at Goldman Sachs Conference Notes

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JPMorgan’s Management Presents at Goldman Sachs U.S. Financial Services Broker Conference

Marianne Lake — CFO

We don’t see widening spreads in high yield as an indication of broader credit deterioration

“we don’t see it as being a broader indication of credit deterioration and with respect to how it’s impacted our trading — look overall, spot trading, credit trading in the quarter has been and particularly in secondary markets have been quite good, no particular impacts.”

The stresses that we are seeing are reasonably tightly contained to energy

“if we look across our portfolio right now and think about the stresses that we are experiencing, they are reasonably tightly contained within energy sector. And specifically on borrowing base determinations downgraded to certain clients. We are seeing materials kind of secondary impact or other stress in the rest of the portfolio more broadly. That’s not to say there aren’t downgrades of individual names, not just thematically and materially not, and it’s really going to depend on — we are expecting that things will remain relatively soft in 2016. But it depends on how stressed that would get as to whether if that would expand. Right now no. ”

Realistically the rate environment is going to drive earnings growth in 2016

“look, I think, if I’m realistic in 2016, the single big thing that is going to drive earnings growth is going to be the rate environment, that doesn’t undermined all of the other work we’re doing.”

Credit is our friend

“Credit will be benign. So credit is our friend, but it’s already very benign. So I think in 2016 to be honest with you, its going to be a little bit rate driven, but beyond that it’s all of the things that we have talked about.”