JPMorgan Is Selling a New Type of Mortgage Credit Risk Transfer

JPMorgan Chase & Co. plans to sell credit risk on a $531 million portfolio of adjustable-rate mortgages, a new kind of offering by the bank and the latest example of the industry’s efforts to de-risk balance sheets.

Its offer includes more than $53 million worth of bonds to be sold through an auction, with pricing for the deal expected sometime this week, according to people familiar with the matter.

Banks have lately been selling more bonds that transfer credit risk to investors, allowing them to book a lighter capital charge on their assets. One newly popular form of the ...