The loans available to funds run under Treasury Secretary Timothy Geithner’s Public-Private Investment Program will have little effect on “non-agency” mortgage-bond values, JPMorgan Chase & Co. analysts said.

Under the PPIP, whose nine managers were announced last week along with additional program details, the Treasury will match as much as $10 billion in equity from private investors with taxpayer money, and then offer as much as $20 billion in loans from the department to the vehicles.

Unlike the initial expectations of some analysts and investors, the funds’ leverage will mainly consist of the “one turn” available from the Treasury, and be paid down with more of the proceeds from investments after three years, according to a July 10 report from the JPMorgan mortgage-bond analysts led by John Sim. This will limit the value of the implicit “put option” of the non-recourse financing, they said.

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