Wave of Regional Bank Bond Sales Seen Hitting After Earnings

A wave of regional bank bond sales is likely to come crashing over the US debt market in the coming days as deposit outflows and new regulations spur more firms to borrow.

Regional banks could sell as much as $168 billion of bonds over time to meet new regulations requiring lenders to have more securities that can help absorb losses in times of trouble, Bloomberg Intelligence wrote in a note.

The banks may take up to three years to sell the bonds, which will be issued by their holding companies and are known as total loss aborbing ...