(Bloomberg) — Wall Street’s largest banks are poised to barrel into the US corporate bond market as earning season kicks off, spurred to sell new debt by looming maturities and tougher regulatory requirements.
Most Read from Bloomberg
Major US banks are expected to sell between $30 billion and $34 billion of new bonds in January once they report fourth-quarter results, according to JPMorgan Chase & Co. credit strategists. That compares to a historical average of $26 billion for the month, according to an analysis of sales from 2014 to 2023.
JPMorgan, Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. are likely to be among the first to test investor appetite in red-hot credit markets after releasing earnings on Friday. To David Knutson, senior investment director at Schroder Investment Management, the market is likely to be swimming in new debt from global systematically important banks over the next week.
“There is higher…
