the biggest six banks From USA have issued about $314 billion worth of bonds so far this year, the highest since 2008, according to Dealogic.
After the release of third-quarter balance sheets earlier this month, banks Goldman Sachs, Morgan Stanley e Bank of America announced multibillion-dollar bond sales.
Banks are playing an important role in boosting the corporate bond market, which would otherwise have slowed down.
Financial institutions are the issuers behind more than a third of US investment-grade debt so far this year, according to Dealogic, the largest share of the time series.
As record debt sales they may seem unnecessary, as banks report positive cash, having taken trillions of dollars in deposits since the beginning of the pandemic.
You depositsHowever, they are only part of the equation for big banks, which are also forced to keep a certain portion of their liabilities in long-term debt.
Because of that, the debt proportion in relation to others liabilities it can become unbalanced when deposits increase so much. So banks are issuing more bonds to overcome regulatory hurdles.
Another interesting point for banks that sell debt is their ability to lock in low borrowing costs in the long run, which would help boost profits in the future.
At the moment, however, demand for loans is weak, as during the pandemic, consumers reduced spending and received federal incentives, which gave them money to pay off loan balances.
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