Citigroup Inc. is more likely to cut the conversion ratio for its preferred shares now that the common stock is trading above $3.25, according to Tatyana Hube, a Bank of America Corp. analyst.

In February, Citi announced plans to exchange up to $52.5 billion of preferred shares for common stock to replenish its equity capital. Shares of the New York company closed above the planned conversion price of $3.25 on Monday for the first time since the plans were announced.

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