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.


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.