Midday Commentary: Financials flat to weaker in early trade; JPMorgan, Morgan Stanley ease

By Cristal Cody

Tupelo, Miss., Feb. 3 - Financial paper traded mostly flat to modestly weaker in the secondary market early Monday, according to informed sources.

Market participants were focused on economic data, new Federal Reserve chairman Janet Yellen and upcoming potential leveraged buyout and merger activity, sources said.

"This will be a critical week for credit spreads," RBC Capital Markets, LLC analysts said in a note on Monday.

In early trading, JPMorgan Chase & Co.'s 4.85% senior notes due 2044 eased about 1 basis point, according to a market source.

Morgan Stanley & Co. Inc.'s 2.5% senior notes due 2019 traded about 1 bp wider, a source said.

The Markit CDX North American Investment Grade series 21 index closed on Friday 1 bp weaker at a spread of 72 bps.

JPMorgan eases

JPMorgan's 4.85% notes due 2044 (A3/A/A+) traded about 1 bp wider from Friday's session to 121 bps offered on Monday, according to a market source.

JPMorgan sold $1 billion of the long bonds at Treasuries plus 112.5 bps on Jan. 21.

The financial services company is based in New York City.

Morgan Stanley weaker

Morgan Stanley's 2.5% notes due 2019 (Baa2/A-/A-) eased about 1 bp from the previous session to 104 bps offered, a source said on Monday.

Morgan Stanley sold $2 billion of the notes at a spread of Treasuries plus 95 bps on Jan. 21.

The financial services company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.