Goldman Sachs, JPMorgan set sights on next bank crisis

London

LESS than a decade after the last major banking crisis, Goldman Sachs Group Inc and JPMorgan Chase & Co are offering investors a new way to bet on the next one.

The two financial giants are now offering trades in derivatives that enable investors to bet on or against high-risk bank bonds that financial regulators can wipe out if a lender runs into trouble. Others are also planning to start making markets in the contracts, known as total-return swaps, in the coming weeks, according to Max Ruscher, the London-based director of credit indexes at IHS Markit Ltd, which administers the benchmarks that the swaps are linked to.