JPMorgan Eyes Rare SRT Deal Tied to $2 Billion of Art Loans

JPMorgan Chase & Co. is making preliminary inquiries with investors to gauge appetite for a significant risk transfer tied to a portfolio of loans used to purchase artwork, according to people familiar with the matter.

The potential size of the SRT could be equivalent to around 12.5% of the total loan pool of about $2 billion, said the people, who asked not to be identified because the matter is private.

The deal is at an exploratory stage, so the terms may change or the bank may decide against pursuing it altogether, the people said. A representative for JPMorgan declined ...