January 4, 2024 (NO COMMENTS)

Duo’s long-term debt headroom closest to regulatory requirements among top US banks

Citi and JP Morgan fell closer to their minimum long-term debt (LTD) requirements over the first nine months of 2023, as they pulled the brakes on issuing bail-in securities amid climbing interest rates. The two banks’ LTD stock at end-September totalled 5.2% and 4.8% of their respective supplementary leverage ratio (SLR) exposures, just 31 basis points and 69bp above minimums. While the duo’s LTD headroom was already smaller than other US systemic lenders’, their buffers shrank even further