Morgan Stanley sells sub notes; AutoZone prices; Bank of America trades tighter

By Aleesia Forni

Virginia Beach, April 20 – The investment-grade bond market opened the week on solid footing on Monday, with new deals pricing from Morgan Stanley, AutoZone Inc., National Rural Utilities Cooperative Finance Corp. and New York Life Global Funding.

Morgan Stanley attracted around $7 billion of orders for its new $2 billion global subordinated note.

The new 12-year offering sold around 12.5 basis points tight of the mid-point of initial guidance.

Also on Monday, AutoZone sold $650 million of senior notes in six- and 10-year tranches, both at the tight end of talk.

National Rural Utilities and New York Life Global Funding were each in the market with upsized new issues.

National Rural priced $500 million of two-year notes, and NY Life offered $450 million of three-year bonds.

The preferred market saw Citigroup Inc. announce a benchmark offering of $1,000-par series P fixed-to-floating-rate noncumulative preferreds.

The week’s opening session hosted around $3.6 billion of new issue activity.

Sources are calling for around $15 billion to $20 billion of supply to price during the week.

In the secondary market, spreads traded mostly tighter during Monday’s session.

The Markit CDX North American Investment Grade series 23 index firmed 2 bps to a spread of 62 bps.

Bank of America Corp.’s $5 billion of notes, which sold in three tranches on Thursday, traded mostly tighter in the secondary.

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