JPMorgan Chase & Co. (JPM.US) is following Goldman Sachs Group, Inc. (GS.US) in issuing investment-grade bonds to address potential credit risks.

JPMorgan Chase (JPM.US) announced on Wednesday that it is selling investment grade bonds in three parts, joining competitor Goldman Sachs Group, Inc. (GS.US) in debt financing after releasing its third-quarter earnings. According to sources, the longest portion of the issuance is an 11-year bond with a yield that may be 1.05 percentage points higher than U.S. Treasuries. The proceeds from the bond issuance are said to be used for general corporate purposes. Prior to the bond issuance, JPMorgan Chase CEO Jamie Dimon warned about the possibility of deteriorating credit quality, casting a shadow over the bank's surge in trading and investment banking revenue. This more cautious outlook is reflected in JPMorgan setting aside an additional $810 million for potential bad loans, exceeding analysts' expectations. Goldman Sachs Group, Inc. sold $10 billion in investment grade bonds on Tuesday after announcing record third-quarter revenue, marking its largest bond issuance in nearly four years.