JPMorgan Chase & Co. (JPM) has more than tripled its holdings of mortgage securities without U.S. government guarantees to $72 billion as the nation’s biggest bank bets on borrowers from outside the country it calls home, the gurus at Bloomberg report.
The investments swelled $8.4 billion in the fourth quarter, climbing from $52.8 billion at the end of 2010 and $19 billion the prior year, according to regulatory data released last week. The bank has primarily been adding debt from outside the U.S., including bonds tied to U.K. and Dutch mortgages, Securities and Exchange Commission filings by New York-based JPMorgan show.
“The bet is they can get a little more yield in areas where they think that they’re safe,” said Jim Leonard, an analyst at Morningstar Inc. in Chicago who covers the bank’s debt. While mortgage bonds carry a stigma after fueling the worst financial crisis since the 1930s, “that can be a little unfair” because many were repaid in full, he added….
Read more at http://www.bloomberg.com/news/2012-02-23/jpmorgan-wagers-72-billion-on-global-home-loans-in-yield-hunt-mortgages.html
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