JPM · 10-Q · 2026Q2 · Full report

Downgrade Trigger Liquidity Impact

JPMORGAN CHASE & CO · 2026-08-06 · Importance 57 · Surprise 72

At June 30, 2026, OTC and OTC-cleared derivative payables containing ratings-based collateral or termination triggers had aggregate fair value of $25.0 billion, up from $20.0 billion at December 31, 2025. JPMorgan had posted $25.1 billion of collateral against these positions at June 30, 2026, compared with $20.6 billion at year-end 2025. A downgrade below the lowest rating specified in a derivative contract can require additional initial margin or settlement of contracts with termination triggers, creating a material contingent liquidity exposure. The filing does not provide populated amounts for the incremental collateral or settlement impact of one- and two-notch downgrades in the supplied section.