KeyCorp announced on April 21, 2026 that it is issuing four new preferred stock series—KEY.PR.K, KEY.PR.L, KEY.PR.M, and KEY.PR.N. The first two series correspond to the bank’s existing Series G and Series H preferred stocks, while the latter two are newly introduced and have not been previously identified in public filings.
The new series carry coupon rates of 5.625% for KEY.PR.K (Series G) and 6.200% for KEY.PR.L (Series H). The dividend yields of 10.42% and 11.54% reported in the original article refer to yield‑to‑call, not the stated coupon rates. Call protection periods vary by series and are disclosed in the prospectus, but the series are not callable until the end of their respective protection periods.
Morningstar DBRS has assigned a BBB (low) rating to the new preferred stock issues, indicating investment‑grade credit quality. Analysts view the series as attractive buy opportunities, reflecting confidence in KeyCorp’s capital position and the bank’s ability to meet regulatory requirements.
The capital raised through the preferred stock issuance will support KeyCorp’s lending activities, absorb potential losses, and strengthen the bank’s regulatory capital buffers. The move follows a strong Q1 2026 earnings report in which net income rose 33% to $486 million and revenue increased 10% to $1.5 billion, driven by robust demand in core banking segments.
Market reaction to the announcement was muted, with investors focusing on broader banking sector caution. Analysts noted that while the high yield‑to‑call figures may attract income‑seeking investors, the lower coupon rates and call protection terms reflect a conservative approach to capital raising.
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