Morning Commentary: Morgan Stanley, PNC, BlackRock, Ontario to price high-grade bonds

By Cristal Cody

Tupelo, Miss., Jan. 16 – Investment-grade supply is expected to continue on Thursday in both the corporate and sovereign, supranational and agency primary markets.

Morgan Stanley is offering floating-rate senior notes due 2023 and fixed-to-floating rate senior notes due 2031 after releasing strong fourth-quarter profit results on Thursday.

PNC Financial Services Group, Inc. is marketing 10-year senior notes following the release of the company’s fourth-quarter earnings on Wednesday.

BlackRock Inc. also plans to price fixed-rate notes after posting its fourth-quarter earnings results the previous day.

Meanwhile, the Province of Ontario is marketing dollar-denominated three-year global notes. Initial price talk is in the mid-swap plus 17 basis points area.

Week to date, investment-grade issuers have priced more than $23 billion of notes.

About $30 billion to $35 billion of bond supply was forecast for the week, according to syndicate sources.

Bank and financial investment-grade supply was anticipated following the release of fourth-quarter earnings this week.

JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. priced preferred share offerings on Wednesday following the release of quarterly results on Tuesday.

High-grade secondary volume week to date includes $22.62 billion of corporate bonds traded on Wednesday, $23.88 billion on Tuesday and $20.05 billion on Monday, according to Trace data.

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