JP Morgan Chase Announces New Fixed Rate Preferred

Giant banker JP Morgan Chase (NYSE:JPM) has announced a new issue of fixed rate preferred stock.

The issue will pay qualified dividends for tax purposes and the shares will be investment grade—Baa3 from Moodys and BBB- from Standard and Poors.  Of course, being a banking issue, it is required to be non cumulative to be used as Tier 1 capital.

The pricing of the issue has not been announced as of yet but it will be between 5.625% and 5.875%.  We expect pricing soon.  No OTC Grey Market symbol is available as of yet.

JP Morgan currently has 6 $25/share issues outstanding (shown below) and all are fixed rate.  JPM has a number of fixed-to-floating issues outstanding but they are $1000/share issues.

The preliminary prospectus can be seen here.




One thought on “JP Morgan Chase Announces New Fixed Rate Preferred”

  1. Do you think they will trade below $25? The other issues have a higher yield, except for the one that can be called immediately. And, by the way, if the pricing is going to be 5.6250-5.875, isn’t that a signal that JPM-A is overpriced? (I don’t know what amount of dividends might have accrued on the various issues, so that might account for differences.)

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