Last November, Citigroup announced that it had raised $7.5 billion from the Abu Dhabi Investment Authority. The sale would make the sovereign fund the bank’s largest shareholder, with a 5 percent stake. Citigroup, the largest U.S. bank by assets, had recently acknowledged that it would absorb up to $13 billion in losses from failed subprime mortgage investments. The funding came in the form of mandatory convertible bonds that paid an 11 percent interest rate. The financial media interpreted that relatively high rate as a further sign of the bank’s distress. The Wall Street Journal noted that the bank was paying a higher rate than companies that must sell their debt on the junk bond market. (At the time, the average yield on a junk bond was a significantly lower 9.4 percent.) The New York Times wrote that the “coupon suggests the bank is paying a high price for funding.” Some analysts and investors said Citigroup would have been better off selling more shares, rather than selling conver