Fixed-Rate Capital Security

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Fixed-Rate Capital Security

A security that combines features of bonds and preferred stock. Fixed-rate capital securities provide the holder with a fixed coupon with payments on a regular basis, and like bonds, these coupons are tax deductible for the issuer. Likewise, most have a maturity date and are fairly liquid. However, like preferred stock, the issuer may suspend payments on fixed-rate capital securities when it is having cash flow problems, though only if it also stops all dividend payments on stock. Because of these features, fixed-rate capital securities are fairly low risk investments.
References in periodicals archive ?
0 million of Fixed Rate Capital Securities (together, the "Trust Preferred Securities") of QCR Holdings Statutory Trust II and QCR Holdings Statutory Trust III (the "Trusts").
NEW YORK -- Fitch assigns a long-term rating of 'A' to the $1 billion of fixed rate capital securities, issued by JPMorgan Chase Capital XXII, a Delaware statutory trust.
Nasdaq-NNM: CBSI) today announced the placement of $30 million of fixed rate capital securities through Community Capital Trust I, a newly-formed Delaware business trust, controlled by CBSI.
28 /PRNewswire/ -- First of America Bank Corporation (NYSE: FOA) today announced the placement of $150 million of fixed rate capital securities through First of America Capital Trust I, a newly formed Delaware business trust, controlled by First of America Bank Corporation.