Investors are expecting a flood of new bond issuance to hit the otherwise dry US primary markets as the biggest lenders in the country restock their cash reserves.
Major US banks are anticipated to begin offering new investment-grade bonds in the coming week following earnings, with Barclays Plc projecting a total avalanche of up to $45 billion this quarter.
Of the big six US banks, Morgan Stanley was the first to issue $6.5 billion of debt on Friday.
Money managers are still keeping an eye out for any fresh agreements from Wells Fargo & Co., Citigroup Inc., and JPMorgan Chase & Co., all of which released their profits on Friday.
Results from Bank of America Corp. and Goldman Sachs Group Inc. will be released on Monday and Tuesday, respectively.
According to Joe Boyle, a product manager at Hartford Funds, which has roughly $127.4 billion under management, "volatility is not going to dissuade banks from going to market.