Skip to main content



) --

JPMorgan Chase


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,

Goldman Sachs


offered $1.3 billion worth of 50-year bonds priced at a rate of 6.125%. According to RBC Capital Markets,

Wells Fargo

Scroll to Continue

TheStreet Recommends


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


>To contact the writer of this article, click here:

Lauren Tara LaCapra


>To follow the writer on Twitter, go to


>To submit a news tip, send an email to:


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.