NEW YORK (
said Monday that it plans to buy back $1 billion worth of long-term securities.
JPMorgan is offering to repurchase $1 billion in outstanding 5.875% Capital Securities, Series O. Investors have until 5 p.m. Dec. 10 to receive full price; until 11:59 p.m. Dec. 27 they will be eligible to receive 95 cents on the dollar.
JPMorgan's move is a reflection of banks' using extra capital to deleverage or refinance in a low-interest-rate environment. The 30-year securities mature on March 15, 2035. By comparison, 30-year Treasury bonds were priced at 4.29% and 20-year T-bills cost 3.96% at the end of last week.
Banks have been buying back vintage debt and issuing new bonds with long maturities at similar interest rates. Last month,
offered $1.3 billion worth of 50-year bonds priced at a rate of 6.125%. According to RBC Capital Markets,
also plans to repurchase about $11 billion worth of trust-preferred securities that are costly and no longer eligible for regulatory capital levels.
-- Written by Lauren Tara LaCapra in New York
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