Estimates of the potential size of the U.S. cap-and-trade market range from
$300 billion to $2 trillion.

The banks are preparing to do with carbon what they've done befo design
and market derivatives contracts that will help client companies hedge their
price risk over the long term. They're also ready to sell carbon-related
financial products to outside investors.

"You can't have a successful climate policy without the heavy, heavy
involvement of financial institutions."

As a young London banker in the early 1990s, Masters was part of JPMorgan's
team developing ideas for transferring risk to third parties. She went on to
manage credit risk for JPMorgan's investment bank.

Among the credit derivatives that grew from the bank's early efforts was the
credit-default swap. A CDS is a contract that functions like insurance by
protecting debt holders against default. In 2008, after U.S. home prices
plunged, the cost of protection against subprime-mortgage bond defaults
jumped. Insurer American International Group Inc., which had sold billions
in CDSs, was forced into government ownership, roiling markets and helping
trigger the worst global recession since the 1930s.

http://www.bloomberg.com/apps/news?p...d=aXRBOxU5KT5M

Best Regards

Tom.

"azotic" wrote in message
...
Estimates of the potential size of the U.S. cap-and-trade market range
from $300 billion to $2 trillion.

The banks are preparing to do with carbon what they've done befo design
and market derivatives contracts that will help client companies hedge
their price risk over the long term. They're also ready to sell
carbon-related financial products to outside investors.

"You can't have a successful climate policy without the heavy, heavy
involvement of financial institutions."

As a young London banker in the early 1990s, Masters was part of
JPMorgan's team developing ideas for transferring risk to third parties.
She went on to manage credit risk for JPMorgan's investment bank.

Among the credit derivatives that grew from the bank's early efforts was
the credit-default swap. A CDS is a contract that functions like insurance
by protecting debt holders against default. In 2008, after U.S. home
prices plunged, the cost of protection against subprime-mortgage bond
defaults jumped. Insurer American International Group Inc., which had sold
billions in CDSs, was forced into government ownership, roiling markets
and helping trigger the worst global recession since the 1930s.

http://www.bloomberg.com/apps/news?p...d=aXRBOxU5KT5M

Best Regards

Tom.



Can anybody say: "Carbon Bubble"?