Goldman Sachs is issuing $2.5 billion in perpetual preferred bonds. The securities carry a 6.5% yield. Pricing spreads for these instruments have tightened to their most favorable levels for issuers since 2008. This trend signals robust investor demand and improved perceptions of bank creditworthiness.
The bank will use the proceeds to refinance a $750 million preferred note callable in August 2026. Replacing older debt with this issuance allows Goldman Sachs to reduce future funding expenses. The perpetual nature of the bonds provides long-term capital but exposes investors to interest rate fluctuations.