More Supply

Wells Fargo is joining the party and doing a $10 billion offering. The amount of supply hitting the market is monumental. I believe market participants are whistling past the graveyard. I expect a much lower market by the end of the week.

This is a slap in the face to Citigroup as the two deals will now be in competition. Wells Fargo could have easily waited another day.

3 comments:

Anonymous said...

Do you know if it hits the market immediately, like the BofA offering?

Tsachy Mishal said...

I think it will price tomorrow night and start trading Wednesday.

Chaos! said...

Russell 2000 had a strong up day. Russell outperformance doesn't usually proceed a selloff. Caution on the short side.