Morning Commentary: Investment-grade bond spreads stable; Morgan Stanley firms; Verizon eases

By Cristal Cody

Tupelo, Miss., Oct. 24 – High-grade credit spreads opened on Friday mostly unchanged from Thursday, according to market sources.

The Markit CDX North American Investment Grade series 23 index closed 2 basis points tighter at a spread of 66 bps on Thursday.

In the secondary market, Morgan Stanley’s 3.7% senior notes due 2024 brought on Monday traded more than 10 bps tighter than issuance, a source said.

Verizon Communications Inc.’s 4.4% senior notes due 2034 were quoted 3 bps wider than where the paper priced on Wednesday, according to a market source.

Morgan Stanley paper tightens

Morgan Stanley’s 3.7% notes due 2024 were quoted early Friday at 143 bps offered, a source said.

Morgan Stanley sold $3 billion of the notes (Baa2/A-/A) on Monday at a spread of Treasuries plus 155 bps.

The financial services company is based in New York City.

Verizon eases

Verizon’s 4.4% notes due 2034 (Baa1/BBB+/A-) traded at 148 bps offered early Friday, weaker than where the bonds priced on Wednesday, a source said.

Verizon sold $2.5 billion of the 20-year notes at a spread of Treasuries plus 145 bps.

The telecommunications 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.