JPMorgan Creditors Look Past Madoff to Profit: Corporate Finance
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JPMorgan Chase & Co. is paying a lower relative cost to borrow than before the financial crisis even after ceding more than a year’s profit to settle disputes linked to faulty mortgages and Bernard Madoff’s Ponzi scheme.
The biggest U.S. bank borrowed $5.25 billion yesterday in an offering that included 10-year securities yielding 1.125 percentage points more than Treasuries, the narrowest spread among similar JPMorgan notes since 2005. The measure, used to gauge creditworthiness, has contracted from 1.33 points a year ago and is the tightest among similar-maturity bonds of Wall Street competitors including Citigroup Inc. and Morgan Stanley.