JPMorgan Chase: Higher Rate Preferred Shares With Marginal Risk Compared To CDs


  • JPMorgan Chase recently announced premature redemption on 5.5% and higher yielding short-term CDs.
  • JPMorgan Chase’s acquisition of First Republic Bank led to loan growth, but the bank surprisingly has struggled with deposits.
  • Series DD and Series EE preferred shares offer attractive income investments at 5.75% and near 6% yield.
Skyscraper building of JP Morgan in Hong Kong



Last fall, interest rates began a notable climb and equity markets were selling off amid high volatility and fears that interest rates may need to go higher to fight inflation. To hedge against my equity positions, I purchased several 1 year CDs

Analyst’s Disclosure: I/we have a beneficial long position in the shares of JPM.PR.C, JPM.PR.D either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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