Search
 

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.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Why Companies Are Racing to the U.S. Debt Market

Why Companies Are Racing to the U.S. Debt Market

Caleb Mutua & Jeannine Amodeo |

Borrowing costs have become compelling, as markets are already pricing in expectations for reduced interest rates. And several external factors could reverse that trend.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.