John O'Donnell Chart of the Week
Corporate bond issuance is running an average about $20 billion a week for 2013 and so far in 2014. But the total bond holdings of large banks currently totals about $70 billion (3 1/2 weeks of corporate issuance). It is obvious that banks are not buying corporate bonds; the bonds are being sold to the non-bank investment market. It is an expression of confidence in the future of the economy that corporations are issuing more debt rather than equity for financing.
This chart and others discussed in video after the Read more >> jump.