Bank of Hawaii Series B Preferred Shares Yield Surpasses 7.5%

The yield on Bank of Hawaii Corp's Depository Shares 8.000% Non-Cumulative Perpetual Preferred Stock, Series B (BOH.PRB), has climbed past the 7.5% mark. This increase in yield follows recent downward price pressure on the instrument, which hit a low of $26 during Thursday's trading session. Market data reveals a distinct divergence between the bank's different share classes. In Wednesday's session, the Series B preferred shares declined by approximately 0.6%. In contrast, the company's common shares (BOH) surged by roughly 8.9%, indicating a decoupling of sentiment between equity holders and preferred shareholders. For fixed-income investors, the crossing of the 7.5% yield threshold may signal an attractive entry point or reflect shifting risk premiums associated with the bank's preferred capital. The current price action suggests that while the broader market is bullish on the bank's common equity, the preferred shares are experiencing a separate valuation adjustment. This volatility in the preferred shares provides a snapshot of the current pricing dynamics for the bank's perpetual preferred stock, as investors balance the 8.000% coupon rate against fluctuating market prices.