Joseph Goebbels Liveblogs World War II: May 11, 1942
Lisa Pollack on J.P. Morgan's $2B London Whale Loss: Too Big To Hedge

Limits to Arbitrage Bites Again

As I understood it, JPMC had sold protection and shorted bonds. In what universe do they have to pay off the protection and not make a fortune on the bonds?

I guess I am learning--once again--that executing a dynamic hedging strategy requires that the market be efficient at all times you need to trade except the moment you initially put on the position...