Two issuers selectively redeemed TruPS
with a higher spread.
are a type of hybrid security that has features of both debt and equity.
While the exact sale prices the FDIC obtained for its TruP
securities portfolio are unknown, indications are that TruP
CDO values have increased significantly from their financial-crisis lows.
interest deferrals, defaults and recoveries for TruPS
, as well as the
The Redeemed TRUPS
are being redeemed, along with the common securities issued by Citigroup Capital IX, Citigroup Capital XI and Citigroup Capital XVII (collectively, the "Capital Trusts") and held by Citigroup, as a result of the concurrent redemption in whole by Citigroup of the junior subordinated debt securities held by each Capital Trust which underlie the respective series of Redeemed TRUPS
The amount of TruPS
, together with other cumulative preferred stock that a BHC could include in Tier 1 capital, was limited to 25 percent of Tier 1.
Applicable Criteria and Related Research: Fitch Bank TruPS
CDO Default, Deferral and Cure Tables as of January 2013
One issuer representing USD 5m in collateral deferred interest on its TruPS
Table 1 Aggregate BHCs with TruPS
Date Total number of BHCs Number of BHCs with TruPS
(thousands of dollars) 2013 5,320 1.
Fitch estimates there are currently 109 issuers across Fitch-rated TruPS
CDOs that remain participants in the Capital Purchase Program (CPP).
The aggregate principal amount of TruPS
outstanding is USD 350m.
It is planning to redeem USD500m of TruPS
at face value because according to it the Dodd-Frank Act would not allow banks to consider TruPS
as regulatory capital.