Monday, August 15, 2011

Blythe Masters on JPMorgan's EcoSecurities Buy

Blythe Masters was interviewed in this Reuters article about JPMorgan's purchase of EcoSecurities in 2009.  She stated that the purchase "was based on its large pre-2012 portfolio of carbon offsets (estimated in August at around 100 million tonnes), its post-2012 portfolio (around 125 million) and any upside associated with a surge in carbon prices."  
"Even if only the first source of value inherent in our valuation of the company, i.e. its pre-2012 portfolio, were the only thing to come forth we would end up being very happy with our acquisition," Masters said in an interview late on Monday....
Commenting on managing risk:
Masters said the acquisition would help JP Morgan clients better manage risks in fluctuating commodity prices. 
"The reason for our expanding in the carbon space is consistent with our overall thesis that commodity markets as a whole will continue to be extremely active and volatile ... as a function of economic activity and other policies," she said. 
"Carbon is just a part (of JP Morgan's business model), and an important component because of its linkages to the rest of the energy complex and to various regulatory changes going on." 
Masters said a new EcoSecurities CEO will be named soon, "and from there we will review the overall structure of the company to make sure we don't have any overlapping activities that are confusing to clients".
Read the full Blythe Masters EcoSecurities article here.


  1. Very interesting article, I think this will be a great move! Loved it !!! Even though, theres no name for a ceo yet.
    Blythe, please keep that great work, I really admire your work. There's no doubt how great this is coming out. China is a very wasteful place for carbon-related materials. How would you think things might go in their industries?