J.P. Morgan Chase (JPM.US) was the first to enter the investment-grade bond market or trigger a wave of Wall Street bank financing

The Zhitong Finance App learned that J.P. Morgan Chase (JPM.US) became the first bank among the six major Wall Street banks to enter the US investment-grade bond market after the financial report was announced, paving the way for other banks to issue bonds as well.

According to people familiar with the matter, the bank with the largest assets in the US plans to issue as many as four parts of the bond. The longest part of these is an 11-year fixed interest rate to variable interest rate bond, and the yield may be 1.15 to 1.20 percentage points higher than US Treasury bonds during the same period.

The bond issue comes after the bank announced an unexpected increase in net interest income for the third quarter, while also raising expectations for this key revenue source, even though the market generally believes that US interest rates will continue to fall.

J.P. Morgan Communications analyst Kabir Caprihan pointed out in a research report last week that Wall Street's top banks may have borrowed between 20 billion and 24 billion US dollars after releasing earnings reports, far exceeding the average circulation of 15 billion US dollars last October. Major banks are taking advantage of tight credit spreads and strong investor demand to finance.

People familiar with the matter also revealed that J.P. Morgan Chase is the sole bookkeeper for this bond issuance and plans to use the funds raised for general corporate purposes.