JPMorgan is in talks with investors to offload risk tied to more than $4 billion
in net asset value (NAV) loans extended to private equity funds, reflecting
Efforts by the largest U.S. bank to reduce its exposure to a slowing industry.
Under the proposed synthetic risk transfer transaction, JPMorgan would retain
the loans on its balance sheet while shifting up to 12.5% of potential first
losses to investors, offering a low-teens return. The deal involves dozens of
loans across North America, Europe, and the Middle East.
