Credit Derivatives Pioneer JPMorgan Cautious on CDO Revival

As Citigroup Inc. revives a relic of the financial crisis, the bank that was the chief pioneer of so-called synthetic collateralized debt obligations is taking a lukewarm approach.

JPMorgan Chase & Co., which created credit-default swaps and dominated the derivatives market until Citigroup overtook it in 2015, is structuring more conservative deals than its rival, according to people familiar with the matter who asked not to be identified because the trades are private. JPMorgan sold fewer than five full-capital structure deals this year, while Citigroup issued more than 20, accounting for over half of the market, the people said.

Citigroup, ...