Canada adds 634,800 jobs in March -ADP


JPMorgan sells $ 13 billion in bonds in the biggest banking business of all time

(Bloomberg) – JPMorgan Chase & Co. sold $ 13 billion worth of bonds Thursday, the largest deal ever made by a bank. It used some of the cheapest borrowing costs in years to raise capital after the Federal Reserve lifted pandemic aid measures. The deal that followed the bank’s best quarter ever hit the market as corporate borrowers continue to see strong demand for debt that offers a reasonable premium over government bonds. Order books grew to around $ 26 billion, which allowed JPMorgan to cut interest on the debt from the relatively high spreads originally offered, according to one knowledgeable person. The jumbo offering could be related to recent changes to regulatory relief for banks, according to Arnold Kakuda, an analyst at Bloomberg Intelligence. Treasury note liquidity disappeared in March 2020. In response, the Fed told banks that they would not need to consider government bonds or deposits when calculating their additional leverage ratios, which tells them how much capital to set aside to allocate their holdings to back up. This exemption was lifted two weeks ago. Banks continued to have to sell government bonds or add capital, and JPMorgan’s sale of unsecured debt will help meet total loss offsetting capacity (TLAC) requirements and restore balance, Kakuda said. The bank signaled on Wednesday that it would do something. “We have levers for managing SLRs and we will,” CFO Jennifer Piepszak told analysts on a quarterly earnings call. The company declined to comment on Thursday. With today’s sale, according to Bloomberg, JPMorgan has raised $ 22 billion more than any other major U.S. bank to the U.S. dollar investment-grade bond market this year to be strong issuers, opening up the markets gives a certain opportunism, especially when the financing is cheap, ”said Jesse Rosenthal, Senior Analyst at CreditSights. The longest part of the five-part offering, a 31-year security, will do the trick, adding 107 basis points above the government bonds, according to the person who chose not to be identified to discuss a private transaction. The sale follows a strong first quarter gain, including a 15% increase in fixed income, currency and commodity trading revenues and a $ 5.2 billion release from loan reserves. Rival Goldman Sachs Group Inc. also sold bonds on Thursday. The largest bond sale by a bank to date was also from JPMorgan, a $ 10 billion offer in April 2020, data compiled by Bloomberg shows. JPMorgan is the sole bookrunner of the sale and proceeds are for general corporate purposes. More articles like this can be found at Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg LP

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