Big banks plan to borrow $21-24 billion in July after strong second-quarter earnings.

From Nasdaq: 2024-07-11 12:46:02

Wall Street’s top banks, including JPMorgan, Citi, and Wells Fargo, are set to borrow between $21 billion to $24 billion in July following their second-quarter earnings reports. The recent drop in yields is creating a favorable environment for bond issuance, with financial companies accounting for a third of the US investment-grade market.

Barclays analysts predict that big banks will face $50 billion in redemption calls and maturities in the second half of 2024, with $30 billion expected to be issued in the third quarter. New capital rules under Basel III Endgame could drive further bond issuance, with Bloomberg Intelligence forecasting $20 billion to $25 billion in bank bond issuance. Investors are expected to show strong demand, with Voya Investment Management planning to add Big Six bank debt to its portfolio.



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