The U.S. large banks are expected to significantly reduce the scale of bond issuance in the second quarter compared to the previous quarter.

After a busy start to the year, the six major U.S. banks - Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo - are expected to reduce the amount of bonds they issue this quarter. Analysts at JPMorgan Chase and Barclays predict that these banks will issue $35-45 billion worth of high-grade bonds this quarter. According to data compiled by Bloomberg, they issued a total of $65.8 billion worth of investment-grade bonds in the first quarter, although Citigroup did not participate in the bond issuance at that time. Almost all debt issuances occurred before the outbreak of the Iran war, with Goldman Sachs leading the way with a record-breaking $16 billion deal, making the first quarter issuance volume reach a historic high. Based on estimates by Bloomberg Industry Research analysts, this is also the largest scale since the second quarter of 2021.