Here we go:
A trust preferred securities transaction, actually involves the issuance of three separate securities:
1. JPMs issuance of the trust preferred, or capital securities to investors
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Capital securities means it's an equity.
2. the issuance of the trust's common securities to the parent bank holding company.
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Relative amount of common stocks of JPM was issued to LBHI.
3. issuance of debentures by the parent bank holding company to the trust.
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The issued JPM common shares is a debt that must be paid by LBHI.
All three components must exist in one execution. The shares we are holding is in fact a regular preferred tied to other two transactions.
IMO, It will end up as equity if we don't get it from the asset side.