From Bloomberg.
More than 150 companies raised 82.2 bln USD this second quarter in new equity. A faster pace of equity issuance than at the height of the bubble in 2000.
The biggest issuer is the financial sector.
All these new shares are diluting shareholdership, the value of the existing shareholders and the earnings per share.
If the S&P500 is taken as a benchmark then the new shares have diluted corporate earnings by 3%. Total shares in this index have grown with 3.4% since March 31.
More figures. After paying back 68 bln USD in exchange for bonuses, there is still a long way to go. Western governments own roughly an estimates 450 bln USD in banks. Central banks provide generous collateral rules for borrowing in an effort to provide banks with liquidity. But the system needs to refinance some 25.6 trln USD of wholesale finding by 2011. No matter what happens, they never gonna succeed if there is no government back stop.
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More than 150 companies raised 82.2 bln USD this second quarter in new equity. A faster pace of equity issuance than at the height of the bubble in 2000.
The biggest issuer is the financial sector.
All these new shares are diluting shareholdership, the value of the existing shareholders and the earnings per share.
If the S&P500 is taken as a benchmark then the new shares have diluted corporate earnings by 3%. Total shares in this index have grown with 3.4% since March 31.
More figures. After paying back 68 bln USD in exchange for bonuses, there is still a long way to go. Western governments own roughly an estimates 450 bln USD in banks. Central banks provide generous collateral rules for borrowing in an effort to provide banks with liquidity. But the system needs to refinance some 25.6 trln USD of wholesale finding by 2011. No matter what happens, they never gonna succeed if there is no government back stop.
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