Why 4 Major Banks Just Issued $40 Billion in Bonds
Last Thursday, JPMorgan Chase (NYSE: JPM) issued $13 billion in bonds -- the biggest bond deal ever for a bank. It held that title for one day, only to be topped by Bank of America's (NYSE: BAC) own $15 billion bond offering Friday. Not to be left out of the party, Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) issued another $6 billion worth of bonds each.
Following a strong first-quarter earnings period, big banks took advantage of favorable credit market conditions that saw a high demand for corporate debt as well as cheaper funding costs.
These deals have gotten the attention of investors. In total, big banks issued $40 billion in bonds that investors gobbled up. For some banks, like JPMorgan, issuing bonds can help to alleviate some stress from changing regulatory requirements. Other banks issued bonds to take advantage of market conditions and to prepare for the Federal Reserve lifting restrictions put on banks last year.
Source Fool.com
