JPMorgan and A.G. Edwards are teaming up to bring large corporate paper usually targeted at institutional investors to the hands of small retail investors, some of whom demanding denominations as small as $25 allotments, said sources close to the situation. Following the lead set by rivals Salomon Smith Barney, Lehman Brothers and UBS Warburg, JPMorgan has added a twist to its program, aimed at taking a single large corporate bond and selling to small retail buyers, leveraging A.G. Edwards' strength: its retail-sales force.

According to a recently amended shelf registration filed with the Securities & Exchange Commission, JPMorgan vehicle Structured Obligations Corp. names A.G. Edwards as a partner in the sale of highly-rated corporate debt already on JPMorgan's books into smaller pieces to sell through A.G. Edwards' sales force. The filing names Fannie Mae, Freddie Mac, the Tennessee Valley Authority as well as U.S. Treasury as likely to be sold to mom and pop investors.

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