Friday, July 16, 2010

Carbon Trader J.P. Morgan adds 9% Sinopec Stake to 13% Yanzhou Coal Stake (JPM; SNP; YZC)

That was snarky. I apologize to the ghost of the big man with the big nose (and the big bank, house, yacht etc.)

Forget about playing both ends against the middle. This game is about playing every which end against every which spatial position.

One of the features of the European carbon trading scheme is that if temperatures go lower and the use of fossil fuels to fight the cold goes up, the required carbon permits become more expensive the colder it gets.
For some reason I am reminded of the Duchess in "Alice":
There's a large mustard-mine near here. And the moral of that is -- The more there is of mine, the less there is of yours.

Back in late 2009 JPM bought carbon trader EcoSecurities for $204 (206?) Mil.

It's spot on the organizational chart is in the Global Commodities division which is headed up by Blythe Masters.
Masters was one of the co-creators of the credit derivatives which almost entered the vocabulary of the general public in 2008-9.
From Chinavestor:
U.S.-based financial holding company JPMorgan Chase & Co (NYSE:JPM) has raised its shareholding in China Petroleum & Chemical Corporation (Sinopec) (HKG:0386) (NYSE:SNP) to 9.05% from 8.99% on July 13, according to the bourse operator Hong Kong Exchanges and Clearing (HKG:0388).

HKEx said in a statement that JPMorgan Chase (NYSE:JPM) has acquired 9.42 million H-shares in Sinopec for HK$58.875 million. The average price of the share transaction was HK$6.25 apiece....MORE
"Woman Who Invented Credit Default Swaps is One of the Key Architects of Carbon Derivatives, Which Would Be at the Very CENTER of Cap and Trade"
JP Morgan Buys MORE Yanzhou Coal, Upping Stake to 13.23% (JPM; YZC) 
Was Alliance Bernstein Selling the Yanzhou Coal that JPMorgan was Buying? (YZC; JPM) 
JPMorgan increases stake in China's Yanzhou Coal to 11.13% Loses Money on Coal Trade (JPM; YZC)