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.
Comments
This post is closed to comments.