{"id":2055,"date":"2008-04-16T21:17:07","date_gmt":"2008-04-17T01:17:07","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=2055"},"modified":"2008-04-16T21:17:07","modified_gmt":"2008-04-17T01:17:07","slug":"giant-jpmorgan-preferred-issue-in-the-states","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=2055","title":{"rendered":"Giant JPMorgan Preferred Issue in the States"},"content":{"rendered":"<p>In news certain to make Assiduous Reader <i>madequota<\/i> (who <a href=\"http:\/\/www.prefblog.com\/?p=1995#comment-17470\">hates new issues<\/a>) glad that he&#8217;s north of the border, JPM has come out with a <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&#038;sid=aiUU_.dPkuNc&#038;refer=home\">$6-billion fixed-floater<\/a>:<\/p>\n<blockquote><p>The non-cumulative securities priced to yield 419 basis points more than U.S. Treasuries due in 2018 and pay a fixed rate of 7.9 percent for 10 years. If not called, the debt will begin to float at 347 basis points more than the three-month London interbank offered rate, a borrowing benchmark, currently set at 2.73 percent. A basis point is 0.01 percentage point.<br \/><b>&#8230;<\/b><br \/>Writedowns have reduced JPMorgan&#8217;s Tier 1 capital ratio, which regulators monitor to assess a bank&#8217;s ability to absorb loan losses, to 8.3 percent from 8.4 percent. That compares with ratios of 7.5 percent at Wachovia Corp. and 7.1 percent at Citigroup Inc. as of Dec. 31.<\/p>\n<p>The minimum for a &#8220;well-capitalized&#8221; rating from regulators is 6 percent. The assets are calculated by weighing each type relative to its chance of default<br \/><b>&#8230;<\/b><br \/>Lehman Brothers Holdings Inc., the fourth-largest securities firm, sold $4 billion of preferred shares on April 1 that pay a coupon of 7.25 percent and are convertible to stock when Lehman shares reach $49.87. Citigroup, which has reported subprime losses of $24 billion and raised more than $30 billion in capital since November, pays 8.13 percent for preferred stock it sold in January. Bank of America Corp. is paying 8 percent on perpetual preferred shares sold the same month.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>In news certain to make Assiduous Reader madequota (who hates new issues) glad that he&#8217;s north of the border, JPM has come out with a $6-billion fixed-floater: The non-cumulative securities priced to yield 419 basis &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-2055","post","type-post","status-publish","format-standard","hentry","category-miscellaneous-news"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2055"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2055\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}