LOW-COST FUNDING: "A community banker recently told me he could do a retail offering at 6%. I said, 'You should grab that. JPMorgan can barely get that rate,'" says Josh Siegel, CEO of StoneCastle Partners.
Banks issued at least $12.3 billion in subordinated debt last year, far more than what they issued in any year since the financial crisis. A big factor is investor demand, which has been stimulated by a need for higher-yielding holdings.
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