02:52 PM EDT, 08/14/2024 (MT Newswires) -- JPMorgan Chase ( JPM ) intends to sell credit risk on a $531 million portfolio of adjustable rate mortgages, including $53 million worth of bonds to be offered in an auction, Bloomberg reported Wednesday.

The bank is expected to price the deal sometime this week, people familiar with the matter told.

JPMorgan ( JPM ) is calling the credit transfer arrangement "deconsolidated portfolio risk transfer" that would remove the assets from its balance sheet to an off-balance sheet vehicle that will issue bonds for the riskiest portions and enter a credit agreement with JPMorgan ( JPM ) for the remaining portion, according to the report.

Fitch and Morningstar DBRS assigned the bonds preliminary ratings ranging from AAA to B-, the people reportedly said.

JP Morgan did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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