Morning Commentary: Morgan Stanley, Anheuser-Busch notes tighten; secondary trading strong

By Cristal Cody

Tupelo, Miss., Jan. 27 – High-grade bonds traded flat to tighter early Wednesday ahead of the conclusion of the Federal Reserve’s two-day policy meeting and expected statement.

Morgan Stanley & Co. Inc.’s 3.875% senior notes due 2026 firmed 2 basis points in the secondary market.

Anheuser-Busch InBev Finance Inc.’s senior notes (A2/A-) remain active in secondary trading and traded mostly better over the morning.

The Markit CDX North American Investment Grade 25 index opened unchanged at a spread of 104 bps.

The three-month Libor yield was stable at 62 bps.

Secondary trading was strong on Tuesday with $20.76 billion of high-grade issues traded, according to Trace.

Morgan Stanley better

Morgan Stanley’s 3.875% notes due 2026 tightened 2 bps to trade at 182 bps offered early Wednesday, a market source said.

Morgan Stanley sold $3 billion of the notes (A3/BBB+/A) on Friday at a spread of Treasuries plus 185 bps.

The financial services company is based in New York City.

Anheuser-Busch improves

Anheuser-Busch’s 3.65% notes due 2026 traded 6 bps to 7 bps tighter early Wednesday at 162 bps offered, a market source said.

The company sold $11 billion of the 10-year notes on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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