I Why Banks Are Rushing to Sell US Debt

100266787-45ce6a86027ac1e5befd77a30a610367456133c9.240x160Banks and financial institutions are leading the pack of global borrowers that have rushed to the U.S. debt markets at the start of the year.

Global corporations began 2013 with a wave of issuance that pushed total bond sales in the U.S. over the $40 billion mark in less than a week. But no group of borrowers has been more aggressive than banks and financial institutions.

CitigroupAllstate, and MetLife, among others, were joined by the U.K.’sStandard Chartered and Italy’s Intesa Sanpaolo, sending dollar-denominated sales of bank debt to $14.3 billion so far this year, according to Dealogic. In a single blockbuster sale, Bank of America offered $6 billion in three parts on Tuesday. That was the largest bond sale so far in 2013.

Banks are rushing to squeeze in as many sales as possible ahead of the so-called quiet period, which precedes the release of their quarterly earnings reports, analysts said. Wells Fargo kicks off the US bank results season on Friday, withJPMorgan Chase, Citigroup, Morgan Stanley, and Goldman Sachs coming next week.

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Re-posted by: Crosbie Real Estate Group