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JPMorgan Leads Basel III Compliant Sales Bonanza: Credit Markets 

May 16, 2014
Caroline Chen, Bloomberg

Banks are issuing lower-ranked bonds and preferred securities in the U.S. at the fastest pace since the financial crisis, capitalizing on yield-starved investors to satisfy regulatory requirements.

Financial institutions including JPMorgan Chase & Co. and Wells Fargo & Co. are meeting demands to raise more capital by selling $31.8 billion of subordinated debt and preferred shares this year, with $22.7 billion in March and April alone, according to data compiled by Bloomberg. The pace of issuance is the fastest since 2008.

Lenders need to sell the notes in part because new regulations designed to make banks safer have rendered a previously popular form -- called trust-preferred securities -- useless for capital purposes, ruling it must be replaced by 2016. 

Read more: Bloomberg

 
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