(Bloomberg) -- JPMorgan Chase & Co. is the first of Wall Street’s six biggest banks to tap the US investment-grade bond market after reporting earnings, setting the stage for a potential flood of issuance from the banking giants.
The US’s biggest bank by assets is selling the bonds in as many as four parts, according to a person with knowledge of the matter. The longest portion of the offering, an 11-year fixed-to-floating-rate security, may yield around 1.15 to 1.20 percentage point above Treasuries, the person said, declining to be identified discussing private details.
A spokesperson for JPMorgan declined to comment.
The bond sale comes after the bank reported a surprise gain in net interest income for the third quarter and raised its forecast for the key revenue source, even amid expectations that US interest rates will continue to fall.
Top banks on Wall Street could borrow $20 billion to $24 billion after they post results, more than the $15 billion they’ve typically raised in October over the prior decade, JPMorgan credit analyst Kabir Caprihan wrote in a research note last week. The lenders are taking advantage of tight credit spreads and strong demand from investors.
JPMorgan is the sole bookrunner on its bond sale and intends to use the proceeds for general corporate purposes, the person familiar said.
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