JPMorgan’s Credit-Trading Loss Hinged on Internal Valuations (1)

JPMorgan Chase & Co.’s loss-making bets on European bonds and credit-default swaps have sparked queries from market participants disgruntled by what they saw as out-of-step prices and aggressive tactics and saw the bank scrutinize how its positions were valued.

The bank has reviewed the valuations of some positions overseen by Gianfranco Canepa, former co-head of high-yield trading for Europe, the Middle East and Africa, according to people familiar with the matter. Marking the value of those trades using prices closer to other banks’ bids helped to push that book into a loss of $70 million for the year ...