Extend the maturity of those liabilities.
Clients who took Paterson's advice at the end of 2008 now have liabilities priced 200 basis points below the market.
Further increases in long rates are expected.
* * * * * J B K * * * * *
San Francisco
The bank plans to issue $2 billion of the securities, known as TruPS, as soon as today, according to a person familiar with the offering who declined to be identified because terms aren't set. The 30-year fixed-to-floating rate securities may initially yield about 8.5 percent, lower than the 8.875 percent expected yesterday, another person said.
Citigroup, 27 percent owned by the U.S. government, is issuing the debt after borrowers sold $13.9 billion of U.S. corporate bonds yesterday, the busiest day in more than a month. The New York-based bank's offering shows that liquidity is improving, which will help the economy, said Daniel Fuss, vice chairman at Loomis Sayles & Co. in Boston.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ab1l5s9AjN2U&pos=2
