Dividends and US companies issue shares at fastest rate ever, selling the rally

The stock market has rallied and when that happens, investment banks have gone to their clients and US public companies sold more than $60 billion in shares in May. In an article by Joshua Franklin by Reuters, the $60 billion was the biggest monthly haul ever.

In March, investment banks sold $4.8 billion sold in March, the lowest monthly total since December 2018. In April the number was $22.3 billion and $65.3 billion in May.

In the debt markets, over $1 trillion has been raised.

Santosh Sreenivasan, head of equity linked capital markets for the Americas at JP Morgan Chase said there has been a host of companies that have been hugely impacted by COVID 19 and have had to recapitalize.

Linking to dividend paying stocks, the government has provided liquidity to the market and stock markets have risen and companies have done the correct thing to raise money through the stock and bond markets. This will help the earnings of the investment bankers.

There are more questions than answers, till the next time – to raising questions.

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