CIT Group Prices Non Cumulative Preferred

Banking and finance company CIT Group (CIT) has priced a new issue of preferred stock. This is the only issue CIT will have outstanding.

The issue is non cumulative, qualified and junky rated.

Sorry for being a bit late on this one–many folks have mentioned it, but I must have been asleep at the wheel.

This issue should be trading today under ticker CITUP on the OTC Grey market.

The pricing term sheet is here.

4 thoughts on “CIT Group Prices Non Cumulative Preferred”

  1. So Trtiton just issed a B+ preferred that priced at 7.37% while this B+ preferred priced at 5.62%. I realize shipping is more risky than banking but ratings are supposed to account for industry risk. Seems like banks issue lower yielding preferreds across the board for the same rating from other industries. Anyone understand why this is the case? Just a lousy job from the ratings agencies and they need to update the industry risk component of their models?

    1. When you think of it, Martin, aren’t depositors in a whole lot safer position than a preferred player no matter what dire circumstance that could ever occur? But thanks for reminding me to look – I’ve had a savings account at CIT for a few years now because they’ve had very good rates competitively speaking…. However, this month they’ve slashed the savings rate from 2.10% APY last month to 1.80% now… YUCK! They started the year at 2.45% APY…. It’s probably time to move on…

      1. That’s not correct. Deposits are fdic insured. Preferreds are the lowest FI on the companies totem pole.

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