Morgan Stanley, Goldman Sachs issue bonds; Vepco does add-on; Morgan Stanley, Goldman firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 20 – Financial issuers led Monday’s primary session, with Morgan Stanley and Goldman Sachs Group Inc. among the names bringing $6.2 billion of new paper to the investment-grade market.

Morgan Stanley sold its $3 billion of 10-year notes at the tight end of initial price guidance, a source said, attracting an orderbook that was around two times oversubscribed.

Meanwhile, Goldman Sachs’ new $3 billion two-part trade also priced at the tight end of guidance on Monday.

In other primary happenings, Virginia Electric and Power Co. came to market with a $200 million add-on to its existing notes due 2044.

The preferred market saw Bank of America Corp. price a $1.4 billion offering of 6.5% series Z fixed-to-floating rate noncumulative perpetual preferreds.

The primary is expected to see an uptick in issuance this week following last week’s slower pace, which saw only $7 billion of supply.

“Things went pretty well today, so we should see some more activity this week,” a market source said.

KfW is among the names expected to price bonds soon, setting price talk for a planned issue of three-year notes on Monday.

Sources are calling for around $15 billion to $20 billion of high-grade supply for the week.

Investment-grade bonds headed out mostly unchanged to modestly tighter, according to market sources.

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