According to Economic Daily News APP, JPMorgan (JPM.US) has become the first bank among the top six banks on Wall Street to enter the U.S. investment-grade bond market after announcing its financial report, paving the way for other banks to potentially issue bonds.

According to informed sources, the largest U.S. bank in terms of assets plans to issue up to four tranches of bonds. The longest part is an 11-year fixed-to-floating rate bond, with a yield that may be 1.15 to 1.20 percentage points higher than the current U.S. Treasury bond.

The bond issuance took place after the bank unexpectedly reported an increase in third-quarter net interest income, while also raising expectations for this key source of income, despite the common belief in the market that U.S. interest rates will continue to decline.

Kabir Caprihan, the credit analyst at JPMorgan, pointed out in a research report last week that top Wall Street banks might borrow between $20 billion and $24 billion after releasing financial reports, far exceeding the average issuance of $15 billion in October. Major banks are taking advantage of the favorable timing of credit spread tightening and strong investor demand for financing.

Informed sources also revealed that JPMorgan is the sole bookrunner for this bond issuance, planning to use the funds for general corporate purposes.