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JPMorgan Sells Debt at Record Low U.S. Borrowing Cost

Successful bond issue suggests investors have forgotten banks huge trading loss.

By Matt Robinson and Sarika Gangar, Bloomberg | Updated on January 18, 2013

JPMorgan Chase & Co.’s $6.2 billion trading loss last year is little more than a fading memory for bondholders who awarded the lender its cheapest U.S. borrowing costs ever at a debt sale yesterday.

The largest U.S. bank by assets sold $6 billion of securities, including $2.75 billion of 10-year notes with an unprecedented 3.2 percent coupon, according to data compiled by Bloomberg. The extra yield investors demanded to hold those securities rather than government debt was 56 basis points tighter than where average comparable JPMorgan spreads traded before the scandal came to light in April.

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