Morning Commentary: Quebec, Ontario, Nordic Investment Bank, IBM offer notes; Morgan Stanley eases

By Cristal Cody

Eureka Springs, Ark., Jan. 24 – High-grade bond issuers including Quebec, Ontario, Nordic Investment Bank, Tech Data Corp. and International Business Machines Corp. plan to tap the primary market on Tuesday.

The Province of Quebec (Aa2/A+/AA-) intends to price an offering of global notes due Jan. 31, 2022 with initial price guidance in the mid-swaps plus 46 basis points area, market sources said.

BMO Capital Markets Corp., BofA Merrill Lynch, Deutsche Bank Securities Inc. and Scotia Capital (USA) Inc. are the lead managers.

Nordic Investment Bank (Aa2/AA-) is marketing $1 billion of global notes due Feb. 1, 2022 that were initially talked to price in the mid-swaps plus 19 bps area.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC and TD Securities (USA) LLC are the lead managers.

Meanwhile, the three-month Libor yield was unchanged at 1.04% early Tuesday, a source said.

Morgan Stanley’s 4.375% notes due 2047 that priced a week ago traded about 1 bp softer in the secondary market.

On Monday, $17.09 billion of investment-grade issues were traded, with the majority of bonds advancing, according to Trace. Of the 5,423 issues traded, 3,675 advanced.

Morgan Stanley eases

Morgan Stanley’s 4.375% notes due 2047 traded about 1 bp softer from where the paper was seen in the previous session at 138 bps offered, according to a market source.

The notes (A3/BBB+/A) were sold on Jan. 17 in a $2.25 billion tranche at a spread of Treasuries plus 148 bps.

The financial services company is based in New York City.

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