JPMorgan Chase on Thursday raised $1.6bn in hybrid securities to bolster its balance sheet but had to pledge to pay a high interest rate to lure investors. Bankers close to the deal said JPMorgan's issuance of preferred debt, a security that is a mixture of equities and bonds, paid an annual interest rate of 8.625 per cent.

That is the highest rate offered by the bank on preferred debt since the merger that created it in 2000 and nearly 10 per cent higher than JPMorgan's previous issuance of hybrid securities in April, according to Dealogic.