JPMorgan Chase (JPM) has announced they will be selling a new preferred stock issue.
No doubt the issue will be a large one and will be qualified, but non-cumulative.
JPM has a number of issues already outstanding which can be seen here.
The preliminary prospectus is here.
EarlyBird was on top of this and posits some yield talk in the 4.375%- 4.50% area.
11 thoughts on “JPMorgan Chase to Sell New Preferred Issue”
Priced @ 4.20
Since I’ve never been a flipper its just another one I’ll pass on. I still say for the true investors among us all these low yielders of 4.5% and Lower will come back to bite you on the A– down the road in a couple of years.
There is a thought floating around that I tend to agree with that we might hit a yield winter for quite a few years if not longer. The concept is that the average rate we were used to in the past won’t return anytime soon and that a new lower average will take place. If that happens this whole IG between 4-5% might be the new normal for quite a long time.
Even if rates do go up slowly over the next several years you will have time to exit. Is anyone really expecting the 10 yr to spike to 2.5% in 6 months? I thought we were on the way up a month ago. Now look at what happened.
Agreed that may happen–BUT when? I have looked for higher rates off and on for 10 years and the FED refuses to let it happen. So I have been flipping some of these.
It’s basically extortion, forcing Money Market type investors into the
To Heron250; I fully agree with you. I’ve been at this ole game for well over 45 years now. I would just venture a guess that this will end badly for many investors regardless if they are in common stocks or preferreds. Many of them have no idea what a PE even is. They think it stands for a Physical Education Class–LOL.
JPM-L the last pref with 4.625% coupon pref issued in 5/13 trading weaker. Buying some in low $26s to harvest the ex-divd 7/30.
Based on WFC-L current price, guess the this new 4.25% coupon one should trade mid-to-high $25s?
This explains the weakness in the other JPM preferreds.
Given the new WFC priced at 4.25, I’m guessing this prices at 4%.