Royal Bank of Canada taps U.S. market; Morgan Stanley paper tightens; Bank of America flat

By Cristal Cody

Tupelo, Miss., Oct. 23 – High-grade issuers including Royal Bank of Canada tapped the bond market on Friday.

Royal Bank of Canada sold $1.5 billion of 2.35% five-year senior medium-term notes at a spread of 95 basis points over Treasuries.

RBC Capital Markets LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

First Horizon National Corp. and ACE INA Holdings Inc. also were expected to tap the bond market.

In other new issuance, JPMorgan Chase & Co. detailed its $3 billion two-part sale of five-year fixed- and floating-rate senior notes.

Investment-grade bonds were flat to tighter in secondary trading, while credit spreads improved during the session.

Morgan Stanley’s 4% senior notes due 2025 tightened 9 bps on the bid side on Friday.

Goldman Sachs Group Inc.’s new paper traded 4 bps to 5 bps tighter earlier in the day.

Bank of America Corp.’s 3.875% senior notes due 2025 headed out flat.

The Markit CDX North American Investment Grade 25 index firmed 3 bps to close at a spread of 77 bps.

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