Morning Commentary: MidAmerican Energy, AerCap in pipeline; Libor yield up; Morgan Stanley flat

By Cristal Cody

Eureka Springs, Ark., Jan. 23 – At least two high-grade issuers are expected to tap the primary market, while market participants were focused on a sharply lower dollar early Monday and the impact on the financial markets following Donald Trump’s inauguration on Friday.

MidAmerican Energy Co. is marketing two tranches of 10- and 30-year first mortgage bonds.

AerCap Ireland Capital DAC is offering senior notes guaranteed by AerCap Holdings NV.

The three-month Libor yield was up 1 basis point to 1.04% on Monday.

In the secondary market, Morgan Stanley’s 4.375% notes due 2047 that priced in the previous week were unchanged from where the paper traded on Friday.

Secondary trading volume in the broader high-grade bond market was heavy in the previous week before dropping to $15.21 billion on Friday, compared to $23.47 billion on Thursday and $22.1 billion on Wednesday, according to Trace.

Morgan Stanley steady

Morgan Stanley’s 4.375% notes due 2047 were quoted flat from Friday at 137 bps offered, according to a market source early Monday.

The notes (A3/BBB+/A) were sold on Tuesday in a $2.25 billion tranche at a spread of Treasuries plus 148 bps.

The financial services company is based in New York City.

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