Corporate-Bond Sales Raise Volume on Wall Street

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 16 (Bloomberg) -- Bloomberg's Lisa Abramowicz and Alix Steel examine the recent increase of corporate-bond sales. They speak in "On The Markets" on Bloomberg Television's "In The Loop."

Municipal bond activity.

Wall street second-quarter earnings as a whole were propped up by a record june for u.s. corporate bond sales and better than expected bond trading revenues.

That is not something you hear often.

Will this momentum continue into the second half of the year?

With us is lisa brownabramowitz.

Why now?

Companies are looking around and they i say let's lock in these costs, which are less than half a percentage point within the all-time low record deal.

They basically, why not lock them in?

Treasury yields are expected to rise to the rest of the year.

Why don't we get ourselves some lower costs?

Is that good or is it that other parts were bad?

Foreign exchange and rates were still do that.

They were still pretty bad but this is compared to last summer.

June last year was pretty terrible, everything was going awry with the federal reserve suggesting they were going to start tapering stimulus.

Compared to that, banks are probably better positioned.

They had some good wagers on longer dated treasuries and their inventories, which also helped out.

Meanwhile, with the corporate jet sales, -- corporate debt sales, one hundred $60 billion of dollar denominated corporate jet sales injured, almost three times -- corporate debt sales in june, almost three times.

Junk bond trading values soared in june, are we seeing banks become more risky for the long-term?

You have more investors pitted against each other.

Some see value, others are selling.

Hedge funds have been taking wagers.

This tends to be a more profitable area for banks because margins are wider, there 's a bigger bid ask spread.

It is still a pretty bleak la ndscape, revenues dropping on the debt trading side.

Even before june we saw that trading values slumping.

Even jpmorgan says they are not seeing this momentum continue.

Volatility has dropped further after janet yellen's testimony yesterday.

People are saying she is determined to keep everything on course.

Maybe an anomaly for jim, thank you, we appreciate it.

Keep watching, janet yellen preparing to start testimony, special coverage is coming up next.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change