Insight: JPMorgan bets sent false signals to wider debt market

JPMorgan Chase & Co's disastrous bets on corporate debt may have caused unexpected collateral damage: erratic behavior in a barometer that measures the financial health of blue-chip U.S. companies. Those ...

* Investment bank bet against CIO in derivatives market * Bank said to have discussed merging opposing trade books * Opposing bets could fuel claim JPM is too big to manage

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NEW YORK (Reuters) - Saba Capital Management's Boaz Weinstein recently exited a now famous and profitable credit derivative bet against JPMorgan Chase & Co , according to sources familiar with the trade. In May, JPMorgan reported a $2 billion trading loss in its chief investment office, due to large bets on an obscure group of indexes that track the performance of corporate bonds, including the Markit CDX NA IG Series 9 index. Weinstein's Saba, among other funds, bet against that trade. ...

Caterpillar, Coca-Cola, Exxon Mobil, GE, Microsoft, and McDonald’s—these are all blue chip companies that Americans likely know, consume and own in their investment portfolio. What about the blue chips that call the world’s second largest economy home?