Posted 1/16/2024, 4:11:50 PM
Big Banks Rush Bond Issues Before New Regulations Take Hold, With $35B Expected This Month Despite Holiday-Shortened Week
- Wells Fargo, JPMorgan, and Morgan Stanley announced new bond issues on Tuesday following earnings releases last week
- January historically sees the most bank bond issuance, with an average $22.58B from the "Big Six" banks over the last 7 Januaries
- At least 11 investment-grade bond offerings are expected to price Tuesday, including from Wells Fargo, JPMorgan, and Morgan Stanley
- Heavy bond supply this week comes despite the Martin Luther King Jr. holiday-shortened week
- Banks are looking to issue bonds now ahead of new regulatory requirements to maintain higher capital reserves, with an expected $35B total from major U.S. banks this month