Goldman Sachs launches new preferred shares after spreads hit post-crisis tights

The sale comes days after preferred stock spreads narrowed to their tightest levels since the global financial crisis, suggesting the bank is tapping unusually favorable funding conditions.

Summary

Goldman Sachs is coming to market with new preferred shares just days after preferred stock spreads reached their tightest levels since the global financial crisis. The timing points to an effort to raise capital when investor demand has pushed financing costs lower, making preferred issuance more attractive for the seller.

Terms & Concepts
  • preferred shares: Stock with priority over common dividends
  • preferred stock spreads: Yield premium investors demand for preferreds