JP Morgan

Sold $ 13 Billion of Bonds!

  JP Morgan Sold $ 13 Billion of Bonds! JP Morgan Chase & Co. sold $ 13 billion worth of bonds on Thursday. Utilizing some of the cheapest borrowing costs to raise its capital after the Federal Reserve's aid measures, The Company sold $ 13 billion worth of bonds on Thursday. This has been recorded as the biggest deal a bank has ever made. The deal was launched while corporate borrowers, who provide a reasonable premium over treasury bonds, continued to see high debt demand. According to information from close sources, the order books increased to about $ 26 billion, allowing The Company to cut interest on the loan from the higher spreads it initially offered. Treasury liquidity disappeared in March 2020. In response, the Fed said banks do not have to take into account Treasuries or deposits when calculating additional leverage rates. This tells them how much capital to spare to back up their assets. This exemption was lifted 2 weeks ago.

JP Morgan Chase & Co. sold $ 13 billion worth of bonds on Thursday.

Arnold Kakuda, Bloomberg Intelligence analyst, told banks that JP Morgan's unsecured debt sale would help it meet its total loss-recovery capacity or TLAC requirements and bring the rate back into balance. "We have leverage to manage SLR and we will do it," said Jennifer Piepszak, the bank's director of finance, to analysts who called quarterly revenue, while the company declined to comment further on the issue. Bank; It follows strong first-quarter gains, including a 15 % increase in sales, fixed income, foreign exchange and commodity trading revenue, and $ 5,2 billion in release from loan reserves.

   

Source: Yahoo.Finance

 

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