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Corporate America sold nearly $75 billion of stock in May. Here's what unleashed the record-setting equity resurgence - and a huge payday for Wall Street banks

Posted On: 30 May 2020   |   Posted By: Business Insider

Corporate America sold nearly $75 billion of stock in May. Here's what unleashed the record-setting equity resurgence - and a huge payday for Wall Street banks

Corporate America sold record-shattering amounts of stock in May.
IPOs and other equity issuances were overshadowed this spring as stock markets tanked and corporates rushed to raised debt instead.
But volatility has faded and markets have rebounded, thanks in part to stimulus from the Federal Reserve. Stock issuance is surging again, producing more than $70 billion in deals in May.
Companies are stockpiling cash in case of another downturn - some to protect themselves in case revenues disappear, and others so they can pounce on M&A deals that may arise.
The record capital markets activity has been a boon for Wall Street banks. They reaped more than $1.7 billion in fees from ECM activity in May, according to Dealogic, second only to March 2000.
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In March and April, corporate America set back-to-back records for issuing investment-grade debt, as companies swarmed bond markets to raise cash while the coronavirus pandemic choked off their revenue.
While US...

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