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.