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JPMorgan, Wells Fargo, and Morgan Stanley boost bond market with $23 billion issuance

Published 2024-01-17, 03:32 a/m
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NEW YORK - In a robust day for the U.S. investment-grade bond market, JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo (NYSE:WFC) & Co., and Morgan Stanley (NYSE:MS) stood out by issuing a combined total of $23 billion in bonds. The substantial issuances contributed to the broader market's $30 billion total for the day, aligning with market expectations of $35 billion in sales for the week.

JPMorgan led the charge with a multi-part deal worth $8.5 billion. Following close behind, Wells Fargo offered bonds totaling $8 billion, and Morgan Stanley completed the trio with a $6.75 billion issuance. These moves are part of the banks' strategies to refinance looming debts set to mature by 2025 and to position themselves favorably ahead of upcoming regulatory changes that could mandate higher capital reserves.

The market's response to these issuances has been positive, showcasing confidence in these financial institutions. This is reflected in the borrowing costs, which remain low, with high-grade spreads near their lowest in two years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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