After reporting their earnings last Friday, both JP Morgan and Citigroup began the week by participating in a new issuance. Without delving into the specifics of the issuance, these issuance signal that banks are extremely interested in issuing ahead of the impending rise in interest rates. And while the Fed’s actual rate action remains unclear beyond the widely held view that rates will increase beginning in March, the banks naturally want to build their war chests ahead of the more expensive issuance environment. Bloomberg has characterized the current bank debt issuance as a “binge” which seems appropriate given the money center banks’ need to fund their significantly higher compensation expenses. Bank earnings will continue for the next week, and we expect a heavy new issuance calendar for at least as long.