By putting their own balance sheets and brand names behind these deals, banks are validating the very underwriting they’ve spent months criticizing for being full of cockroaches.
“As we originate more and more, then we can go to our clients, like insurance companies, and see much more conversion,” CEO Larry Fink told analysts last week.
The total amount currently bet against shares of the S&P 500 companies recently hit $1.4 trillion, about 3.7% of the float, the highest since at least 2010, according to data provider S3 Partners.