Morning Commentary: Council of Europe, EIB, Ontario market notes; Morgan Stanley improves

By Cristal Cody

Tupelo, Miss., Feb. 6 – A few SSA bond issuers are in the investment-grade primary market, while the corporate deal pipeline remained quiet early Tuesday with investors focused on volatility in other financial markets, including stocks and Treasuries.

The Council of Europe Development Bank, European Investment Bank and the Province of Ontario are expected to price new bonds on Tuesday.

The Council of Europe Development Bank (Aa1/AA+/AA+) plans to price $1 billion of five-year senior global notes that were initially talked to price with a spread in the mid-swaps plus 14 basis points area, a source said.

Goldman Sachs International, HSBC Bank plc, Nomura Securities International, Inc. and Toronto-Dominion Bank are the lead managers.

EIB marketing benchmark

The European Investment Bank (Aaa/AAA/AAA) is marketing new benchmark-sized global notes due May 13, 2021 on Tuesday, according to a market source.

The notes were initially talked to price in the mid-swaps plus 3 bps area.

Citigroup Global Markets Ltd., J.P. Morgan Securities plc and RBC Capital Markets are the lead managers.

The Province of Ontario (Aa2/AA-) is offering U.S. dollar-denominated three-year global notes over Tuesday’s session. The notes were initially talked to price with a spread in the mid-swaps plus 16 bps area.

Barclays, BofA Merrill Lynch, BMO Capital Markets and Morgan Stanley & Co. LLC are the bookrunners.

Market sources predict about $25 billion of deal volume for the week.

In the secondary market, Morgan Stanley’s global medium-term senior notes that priced in January have been improving since Friday, a source said. The New York-based financial products and services company’s 3.125% notes due Jan. 23, 2023 traded over the morning at 99.82, up from 99.70 late Monday.

Morgan Stanley (A3/BBB+/A) sold $2.5 billion of the five-year notes on Jan. 18 at 99.775 and a spread of Treasuries plus 77 bps.

Overall secondary market volume totaled $14.94 billion on Monday, according to Trace.

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