Morning Commentary: Morgan Stanley bonds tight in early secondary trade; Verizon bonds mostly firm

By Cristal Cody

Tupelo, Miss., Jan. 23 – High-grade corporate bonds opened the trading session mostly better after credit spreads moved tighter on Thursday, according to market sources early Friday.

The Markit CDX North American Investment Grade index improved 2 basis points to a spread of 68 bps on Thursday.

Morgan Stanley’s 4.3% senior notes due 2045 that priced on Thursday remained tight but unchanged in early secondary trading, a source said.

Verizon Communications Inc.’s bonds (Baa1/BBB+/A-) have traded heavily over the week and remained mostly better after widening earlier in the month, according to a market source. Verizon reported fourth-quarter and fiscal 2014 earnings and revenue on Thursday.

Morgan Stanley strong

Morgan Stanley’s 4.3% notes due 2045 were unchanged but better than issuance at 175 bps bid, according to a market source.

The notes (Baa2/A-/A) headed out on Thursday at 175 bps bid, 173 bps offered.

Morgan Stanley sold $2.3 billion of the bonds at a spread of Treasuries plus 190 bps on Thursday.

The financial services company is based in New York City.

Verizon mostly better

Verizon’s 5.15% notes due 2023 firmed 3 bps to 156 bps bid, a market source said.

The notes were quoted on Jan. 8 wider at 132 bps bid, 129 bps offered and at the start of the month at 118 bps bid, 115 bps offered.

Verizon sold $11 billion of the 10-year notes at a spread of Treasuries plus 225 bps on Sept. 11, 2013.

The telecommunications company is based in New York City.

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