Seeking Alpha

The hunt for yield: A JPMorgan (JPM) plan to issue $500M in preferred stock is scrapped in...

The hunt for yield: A JPMorgan (JPM) plan to issue $500M in preferred stock is scrapped in favor of a $1.1B sale. The shares were priced to yield 5.5% vs. an expected range of 5.5-5.625%. The bank wrote last week (via Michael Sedacca) it was seeing evidence the search for yield was spilling over into dividend/preferred stocks. Indeed.
Comments (5)
  • I said it before..these crooks will "invent" products to sell for the yield hunters...it will be junk...and it will not turn out well.....but commissions and fees will be paid...hefty commissions and fees for sure..
    20 Aug 2012, 03:56 PM Reply Like
  • Callable after 5 years....
    20 Aug 2012, 03:58 PM Reply Like
  • Preferred stock is not a new invention... I learned about preferred stock in high school, decades ago.

     

    For anyone seeking yield, preferred stock is much lower risk than common stock.
    20 Aug 2012, 05:08 PM Reply Like
  • I would buy some of this.
    20 Aug 2012, 10:10 PM Reply Like
  • I have jpmpri (symbol @ fidelity). It's currently $26.43 w/ yld of 8.16%. I would guess that JPM plans to pay this off with the new offering??? Does anyone know?
    26 Aug 2012, 01:14 PM Reply Like
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