If yield is a drug, Wall Street's working overtime to supply it.
Investors' global reach for income is giving America's largest banks their biggest surge in risky loan sales on record. Goldman Sachs Group Inc. and Bank of America Corp. on Tuesday joined JPMorgan Chase & Co. and Citigroup Inc. in reporting first-quarter gains of almost 40% in underwriting revenues.
"There's a narcotic need for higher yield by debt investors, and the Street is going to create the deals to satisfy that," said David Hendler, founder of Viola Risk Advisors. "Those with the better corporate-finance Rolodexes — Goldman Sachs, Bank of America, JPMorgan and Citigroup — are going to see the best deal flow because they're connected to the mid-level companies that seek leveraged lending. It's giving their earnings a boost."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
