High-grade market action slows before holiday; Morgan Stanley firms; MUFG mixed; Ryder eases

By Cristal Cody

Tupelo, Miss., Feb. 17 – Investment-grade issuers stayed to the sidelines on Friday with desks thinning ahead of the Presidents’ Day holiday weekend, with bond markets closed on Monday.

About $15 billion to $25 billion of high-grade issuance is expected in the upcoming short market week, according to syndicate sources.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 64 basis points.

Bonds were mixed in secondary trading on Friday.

Morgan Stanley’s $3 billion of floating-rate senior notes due Feb. 14, 2020 priced on Tuesday traded more than 10 bps better than issuance in the secondary market.

Mitsubishi UFJ Financial Group, Inc.’s $2.5 billion three-part offering of senior notes (A1/A/A) brought to market on Wednesday were mixed.

Ryder System, Inc.’s $300 million of 2.8% medium-term notes due March 1, 2022 priced on Thursday softened about 3 bps in secondary trading.

Morgan Stanley tightens

Morgan Stanley’s floating-rate senior notes due 2020 tightened to 67 bps bid, 64 bps offered, according to a market source.

Morgan Stanley sold $3 billion of the notes (A3/BBB+/A) on Tuesday at par to yield Libor plus 80 bps.

Morgan Stanley is a New York-based financial products and services company.

MUFG mixed

MUFG’s 2.998% notes due Feb. 22, 2022 traded better at 95 bps bid, 93 bps offered on Friday, according to a market source.

MUFG priced $1 billion of the five-year notes on Wednesday at a spread of Treasuries plus 100 bps.

The company’s 3.677% notes due Feb. 22, 2027 softened to 119 bps bid, 116 bps offered.

The $1 billion tranche priced on Wednesday at a Treasuries plus 118 bps spread.

The bank is based in Tokyo.

Ryder softens

Ryder System’s 2.8% notes due 2022 eased to 93 bps bid, 91 bps offered in secondary trading, a market source said on Friday.

Ryder System priced $300 million of the notes (Baa1/BBB+/A-) on Thursday at a spread of 90 bps over Treasuries.

Ryder System is a Miami-based truck rental and fleet management company.

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