To Do

Hi Jeffrey,

I think we should buy 2MM of these GE preferreds. They are trading cheap to their comps. We are looking for 2-3 points of upside.

Can offer 10mm of:

Issuer: GENERAL ELEC CAP CORP

Ticker: GE

Ratings: Baal/AA- (expected)

Ranking: Fixed to floating rate non-cumulative pfd stock

Coupon: 7.125 to 6/15/22; then 3mL+529.6 bps

Maturity: Perp

Price: $105.75

YTC: 6.34%

Cusip: Sector:

Relative Value:

GE 4.65 SNR 10/21 @ 3.25% YTM (Pickup over 300 bps to call)
JPM 7.9 PFD @ 5.90% YTC
WFC 7.98 PFD @ 5.67% YTC
PNC 6.75 PFD @ 5.89% YTC
SCHW 7 PFD @ 5.83% YTC
USB 6.5 PFD @ 5.14% YTC
GE 6.375 67 @ 5.56% YTC (L=43;228.9bps backend)

Paul Barrett, CFA
Managing Director

Global Investment Opportunities Group
JPMorgan Private Bank
320 Park Avenue, 14th Floor, New York, NY 10022

NMLS ID 853441

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