Banks are selling debt at the fastest pace in more than a decade, Business Week reports today. New issues from banks totaled $54 billion this month, compared to $32.1 billion in the same period last year.
Seems banks are trying to get ahead of Obama's regulations:
President Barack Obama called yesterday to limit the size and trading activities of banks to reduce risk-taking and prevent another financial crisis. Banks may be taking advantage of renewed confidence in the financial sector to raise capital before new regulations take effect, said Rajeev Sharma, a portfolio manager at First Investors Management in New York.
“There is still a lot of uncertainty with what will happen with banks in the backdrop of this financial reform,” said Sharma, who helps oversee about $1.4 billion of investment-grade bonds. “As long as these reforms are still proposals, there’s a good opportunity to get in the market now.”