Morning Commentary: Baxalta paper mostly better; Morgan Stanley improves modestly

By Cristal Cody

Tupelo, Miss., June 22 – New high-grade bonds priced from Baxalta Inc. and Morgan Stanley traded mostly better in the secondary market, sources said early Monday.

Baxalta’s senior notes (Baa2/BBB+/BBB+) that priced on Thursday traded about 1 basis point weaker to 7 bps tighter.

Morgan Stanley’s 2.8% senior notes due 2020 firmed about 1 bp.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 68 bps.

Baxalta mixed

Baxalta’s 4% notes due 2025 were quoted 1 bp weaker at 176 bps offered, a source said.

The company sold $1.75 billion of the notes on Thursday at Treasuries plus 175 bps.

Baxalta’s tranche of 5.35% bonds due 2045 traded better at 208 bps offered.

The bonds were sold on Thursday in a $1 billion offering at Treasuries plus 215 bps.

The Deerfield-based biopharmaceutical company is being spun off by parent company Baxter International Inc.

Morgan Stanley firms

Morgan Stanley’s 2.8% senior notes due 2020 traded about 1 bp better at 112 bps offered, according to a market source.

Morgan Stanley sold $2.5 billion of the notes (A3/A-/A) on June 11 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

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