Qualcomm prices $11 billion; Qualcomm, HSBC notes tighten; Morgan Stanley paper eases

By Cristal Cody

Tupelo, Miss., May 19 – Qualcomm Inc. tapped the high-grade bond market on Friday with an $11 billion nine-tranche offering of notes.

Market tone improved after pricing action thinned over the previous two sessions, a source said.

Pricing action is expected to stay strong in the week ahead, despite a shortened week. The bond markets will close early on May 26 for the Memorial Day holiday.

Syndicate sources forecast about $30 billion to $35 billion of supply for the week ahead.

In the secondary market, Qualcomm’s bonds tightened about 1 basis point to 5 bps.

Morgan Stanley’s $3.25 billion offering of 2.75% global medium-term senior notes due May 19, 2022 priced on Tuesday traded about 2 bps softer than issuance on Friday.

HSBC Holdings plc’s $3 billion of 6% perpetual subordinated contingent convertible securities placed on Monday tightened more than 10 bps in secondary trading.

The Markit CDX North American Investment Grade index firmed about 1 bp to close at a spread of 64 bps.

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