Goldman Sachs has issued $2.5 billion in preferred stock, split between two series of fixed-rate non-cumulative preferred shares, in an oversubscribed offering that saw significant investor demand. One series offers a yield of 6.75% and is callable in five years, while the other provides a 7% yield and is callable in ten years. This move comes as Goldman Sachs aims to take advantage of historically narrow credit spreads for preferred stock. Investors placed orders totaling $12 billion for the offering.
The new issuance follows Goldman Sachs' recent redemption of $1.5 billion across three other preferred stock series (Series Q, R, and S) on February 10, 2026. These redeemed shares included depositary shares representing interests in 5.50%, 4.95%, and 4.40% fixed-rate reset non-cumulative preferred stock. The redemption price for each depositary share was $1,000, plus accrued dividends.
Goldman Sachs has been active in managing its capital structure, as evidenced by its past preferred stock issuances and redemptions. For example, in 2016, it issued 26,000 shares of Series O preferred stock with a 5.30% fixed-to-floating rate, redeemable starting November 10, 2026. Additionally, the firm previously issued Series D preferred stock in 2006. The current offering reflects a strategic decision to optimize funding costs in a favorable market environment, following a trend among other financial institutions like Bank of America and JPMorgan who also recently issued preferred shares to capitalize on tight credit spreads.
