Reported about 23 hours ago
US banks are stepping back from issuing preferred shares, a trend initiated by JPMorgan Chase, even though demand from investors remains strong. Capital One recently redeemed a significant amount of preferred shares, contributing to a shrinking market that has not experienced decline for two consecutive years since the financial crisis. As banks no longer require as many preferreds due to easing capital regulations, they are pivoting towards alternative securities like hybrid bonds. This move reflects broader shifts in the market as managers of preferred-focused funds seek new opportunities amid changing investor preferences.
Source: YAHOO