JPMorgan Chase has amended its Ivory Funding Corp. arbitrage program, allowing it to issue secured liquidity notes up to a total of $10 billion. The flexible instrument can be issued in dollars or euros. In Ivory's case, it will have either a call or an extendible feature.
The notes will initially finance mortgage-related whole loans, broker lines of credit and home equity lines of credit, according to Moody's Investors Service, which maintains an Aa2/Prime-1/B+' rating on the vehicle. Each secured liquidity note-funded asset added to Ivory Funding Corp. must offer its own credit enhancement to avoid tapping into Ivory's program-wide credit enhancement, thus preserving its Prime-1 rating.