Big US financial groups have raised more than $28bn in the capital markets in recent days, suggesting that investors believe the sector is poised for a comeback. Merrill Lynch raised $7bn in its first senior unsecured debt sale in six months on Tuesday and Goldman Sachs sold $1.5bn in 10-year notes. CIT, the commercial finance group, sold $1.5bn in common and convertible preferred stock also on Tuesday, 50% more than planned. These sales followed a $6bn preferred share offering from Citigroup on Monday and a preferred sale by JPMorgan Chase last week that also raised about $6bn. Merrill raised $2.5bn in a preferred sale Monday and Lehman Brothers raised $4bn this month a smiliar sale. Lex approves, noting that it is better to take out some insurance against continuing turmoil upfront, rather than rely on the worst being over.
