JPMorgan exits US Treasurys to hedge default risk

Thursday, 10 Oct 2013 | 5:30 PM ET
JPM sells Treasurys
Thursday, 10 Oct 2013 | 4:24 PM ET
JPMorgan Investment Management sells 2013 Treasurys maturing October 16-November 6th, reports CNBC's Dominic Chu.

JPMorgan Chase announced Thursday that it has gotten out of soon-to-mature U.S. Treasurys ahead of a possible default by the government.

"As of Oct. 9, 2013, the funds did not own any securities issued by the U.S. Treasury that mature or have scheduled coupon payments between Oct. 16, 2013, and Nov. 6, 2013," the company said in a statement.

Adam Jeffery | CNBC

Although clearly hedging its bets, JPMorgan also said it "continues to believe the that the probability of a U.S. government default is low."

(Read more: How 'preppers' are gearing up for a US default)

JPMorgan's announcement follows Fidelity Investments' Wednesday that it holds no U.S. debt coming due around the time the nation could hit its borrowing limit.

Fidelity sells short-term US debt
The nation's largest money market mutual fund manager, Fidelity, sold t-bills due to pay interest at the end of the month. Andrew Burkly, Oppenheimer, and George Goncalves, Nomura, weigh in.

That was followed by Pimco founder Bill Gross saying he would follow the opposite strategy. "(We're) buying what Fidelity is selling," he said.

(Read more: Fidelity dumps debt; Gross keeps buying)

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