JPMorgan Chase Prices New Preferred

JPMorgan Chase has priced their new preferred stock with a fixed rate coupon of 6%–kind of skimpy.

This issue is investment grade.  Dividends will be non-cumulative (as virtually all banks and insurance company issues are non-cumulative).  Dividends will qualify for preferential tax treatment.

The final pricing document can be seen here.

As we mentioned yesterday it would seem likely that the bank will call their 6.70% issue which is currently outstanding (there are 7 issues outstanding) and becomes redeemable on 3/1/2019.

The issue will likely trade OTC Grey Market today, but the temporary ticker has not yet been announced.

2 thoughts on “JPMorgan Chase Prices New Preferred”

  1. A few days ago, I took on Barron’s Mag offer for 26 weeks just to read the Fed’s rate as viewed by Jeff Gundlach and Mario Gabelli. They believe the rate increase will not go beyond 3.25% at the highest. Being a sucker for preferreds. 6% JMP is just like 6% for BAC-B. I am prepared to buy 600 shares. I sold the CNP-B with small profit. Difficult to predict the price of the common 2 years yonder. CNP common is climbing despite Schwab cautioning the energy sector today. CNP went up whereas CNP-B down. I do understand why Gridbird has no love for convertible preferreds.
    Nonetheless, I will not pay above par for the new 6% JPM because most people are still concerned with Taper Fear. Thanks for identifying this preferred so promptly, Tim.


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