A JPMORGAN Chase & Co quant unit has amassed a US$100bil derivatives-powered trading book, offering hedge fund-like investing on the cheap to investors of all stripes.
The bank’s Strategic Indices business has been at the forefront of the boom in what are known as Quantitative Investment Strategies, or QIS, which turn well-known systematic trades into swaps or structured notes – making copycat products that are easier and more cost-effective to deploy.