Wall Street’s Biggest Banks Are Tapping the Corporate Bond Market

Wall Street’s biggest banks, which are JPMorgan Chase and Company, Citigroup, and Wells Fargo, are anticipated to hit the corporate bond market. This announcement about these financial companies’ intent comes following their reporting of their quarterly results last week.


We find this US stock market-related report interesting and pertinent to share with our readers. We think this news can help our followers understand the intentions of Wall Street’s biggest banks for this year which can impact their transactions and investments.


According to the Monday, January 17, 2022 report posted online by Malaysian business and financial market news source The Star, Wall Street’s biggest banks reported their earnings results for the final quarter of 2021 last Friday, January 14.


These financial service providers reportedly aim to raise funds before the United States Federal Reserve System knocks borrowing costs higher. Among the banks set to tap the corporate bond market is JPMorgan Chase and Company, which is the United States’ largest bank by assets.


This New York City-headquartered financial services holding company and multinational investment bank reported record profits for 2021 last Friday. JPMorgan Chase and Company confirmed that it posted a record US$48.3 billion in profit last year.


Citigroup fared in the last quarter of 2021 with a revenue of US$17 billion against the US$16.75 billion that analysts expected. Its net income plummeted 26 percent to US$3.2 billion.


Citigroup pointed to an increase in expenses for the sharp decline. It added that the results included a “pre-tax impact” of approximately US$1.2 billion related to its consumer banking businesses in Asia’s sales.


Meanwhile, Wells Fargo and Company is among Wall Street’s biggest banks expected to hit the corporate bond market. It defeated analysts’ estimates for fourth-quarter profit as US economic growth rebound motivated more clients to take out loans, and the banking firm kept a tight lid on costs.


Wells Fargo and Company’s profit skyrocketed 86 percent to US$5.8 billion, or US$1.38 per share. These figures were flattered by a US$943-million gain from the sale of some enterprises and an US$875-million reserve release from coronavirus or COVID-19 pandemic-related losses that did not materialize.


Charles W. Scharf is Wells Fargo’s chief executive officer. During an earnings call with analysts, he cited that the robust US economy continues to positively affect their clients and their results. As major financial institutions, part of JPMorgan Chase and Company, Citigroup, and Wells Fargo’s business is to accumulate money for their operations.

We think Wall Street’s biggest banks’ intent to tap the corporate bond market is their response to the US Federal Reserve System’s forthcoming measures, ensuring that they are marching in lockstep with the central bank. We also believe these financial institutions’ initiative is for the benefit of their clients.  

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