JPMorgan Chase & Co., is preparing to sell a group of mortgage-backed securities worth nearly $2 billion, the company confirmed toMReport Wednesday morning.
This credit risk transfer is expected to reduce the risk borne by U.S. taxpayers and bring more private capital back into the mortgage market. In addition, this transaction will help restore private-sector securitization, a necessary component of the broader recovery of the housing system in the U.S.
According to Wall Street Journal writer, Emily Glazer, the bank is expected to price the residential mortgage-backed securities deal over the next two weeks. JPMorgan Chase would hold 90 percent of the deal by holding the safest parts and selling off the riskier pieces to investors, she wrote.