J.P. Morgan & Co. came to market Wednesday with $1 billion of 10-year subordinated debt, the biggest issue of such securities ever by a bank.
The debt was priced with a 6% coupon at 137.5 basis points over Treasuries-a cheaper price for J.P. Morgan than the 140 to 145 basis-point spread originally planned.
"Investors still think they are getting a bargain in spite of the increase in price," said one trader.
The issue was increased to $1 billion from $500 million, and was still oversubscribed, traders said. They said investors flocked to J.P. Morgan bonds because the company's earnings-though down-came in above analysts' expectations.