JPMorgan Chase Prices New Preferred

The new perpetual preferred from banker JPMorgan Chase (JPM) has priced, but once again the official SEC data has not yet been posted — I will post that detail when it becomes available.

The issue priced at 4.55%.

The issue trades immediately on the OTC grey market under ticker JPMJL.

18 thoughts on “JPMorgan Chase Prices New Preferred”

  1. Wow, there’s much more demand for these than there was on the day of the JPM-Js(4.75%) even with the spectre of rising interest rates. I’ll bide my time instead of swallowing the insult of buying a lower rate above par.

    1. Looks like they priced it at exactly JPM-J’s current (non-stripped) yield at yesterday’s close.

  2. A quick “Sign of the Times”. Verizon came out with a 40 Year Bond this morning. Coupon is 3.9%.

    1. I noticed this when running scans last week. The year 2060 is the new 2050. Whole bunch of companies are jumping on the low interest rate bargain train before it leaves the station soon; BABA, AAPL, ICE, Comcast, Charter Communications, Eli Lilly, JNJ, GOOG, and a bunch more locking in 2%-3% issuance coupons. Must be nice.

    2. 3.9% for a BBB+ Verizon 40 year bond vs. 4.55% for a BBB- non-cum JPM perpetual preferred. Verizon bond sounds slightly better until you factor in the qualified tax status for JPM preferreds.

      1. Or, granted it’s an entirely different animal, but on 3/8/21 Hercules Capital, a BDC, gained IG status at Moody’s being given a Baa3 corporate rating. This will not give an actual rating to the 2 baby bonds, HCXZ and HCXY, but it does define their credit quality in Moody’s eyes. Yesterday you could buy HCXZ 5.25% 4/30/25 ca 4/30/21 at 25.15 which is par stripped.. Personally, I’d rather not take the long duration risk of the JPM issue or Verizon’s and also increase yield to boot, especially since Hercules had most recently issued a $50 mil private placement 4.55% due 2026 on 3/4/21 with a Kroll BBB+ rating (also not officially rated by Moodys). HCXZ is 25.19 bid now…

    3. Hersha Hospitality Trust
      Preferred Dividend Distribution
      The Company announced its Board of Trustees has declared cash dividends on the Company’s Series C, Series D and Series E cumulative redeemable preferred stock reflecting accrued and unpaid dividends for the dividend periods ended April 15, 2020, July 15, 2020, October 15, 2020 and January 15, 2021. The Company will pay a cash dividend of $1.7188 per Series C Preferred Share, $1.625 per Series D Preferred Share, and $1.625 per Series E Preferred Share. These preferred share dividends are payable March 26, 2021 to holders of record as of March 19, 2021.

      The Company also announced that its Board of Trustees declared a cash dividend of $0.4297 per Series C Preferred Share, $0.40625 per Series D Preferred Share, and $0.40625 per Series E Preferred Share for the first dividend period ending April 15, 2021. The preferred share dividends are payable April 15, 2021 to holders of record as of April 1, 2021.

      1. What just happened to the Hersha preferreds? Yesterday they were trading at $25.50 and $25.90. They all just dropped into the mid 24’s. Did they just undeclare the dividends or something?

          1. Normal Ex is the 31st, isn’t it? Or does TDA have that wrong?

            But the announcement says “holders of record by the 19th” for the catch-up dividends. Since record date is the day after Ex date, shouldn’t purchases today count? They’ll be ‘on record’ for tomorrow?

            Did I read too much into the announcement? I pounced on a small number this morning based on that understanding. Well, if nothing else, I’m in under redemption on those and maybe I’ll get lucky and they call soon since it’s past call (c-series that is). And I still get the April divi.

            1. Mark, you have to buy the day before exD in order to capture the dividend.

              In today’s market, settlement of stocks is a T+2 process, which means that a transaction is entered into the company’s record books two business days after the trade.
              To ensure that you are in the record books, you need to buy the stock at least two business days before the date of record, or one day before the ex-dividend date.
              https://www.investopedia.com/articles/02/110802.asp

            2. Problem is that sources have different ex dividend dates for Hersha. As one example Yahoo has it as 3/18 while Market Watch has it as 3/31.

              1. There are 2 different ex dates for Hersha, both are correct. The first one is for the cumulative dividends that were in arrears. The second one is for the current quarter dividend they are now paying. They are paying them in separate checks if you will.

              2. Damn, not the $130 windfall I was expecting…..

                Where does one find the definitive Ex date? I’m usually not playing the dividend capture angle, so have not paid a lot of attention to Ex date – Just buying when the price is right… I just scanned the prospectus for HT-C and it did not jump out at me. Could be that I scanned to fast…

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