JPM - JPM.PR.M: Lock-In Attractive Yields From JPM
2024-03-30 09:54:02 ET
Summary
- JPMorgan is a stable and well-run bank that is able to pay 0.01% on checking and savings accounts despite increasing rates.
- Preferred shares issued by JPMorgan can be considered bond-like and offer a 5.2% current yield with a potential 13% yield to maturity.
- The stability of JPMorgan makes its preferred shares a good investment option, with the expectation of principal accretion and minimal credit risk.
- The bank has been a pillar of stability, even during the 2023 regional banking crisis.
- JPM is currently redeeming older preferred equities series which are coming upon their first call date.
Thesis
One of the main beneficiaries of the regional banking crisis last year was JPMorgan (JPM), an international systemically important bank. JPM represents in our view one of the best run banks and is able to achieve the rare feat of paying 0.01% on their checking and savings accounts currently:
Checking & Savings (JPM)