Morning Commentary: High-grade supply in queue; Morgan Stanley, Anheuser-Busch tighten

By Cristal Cody

Tupelo, Miss., Feb. 16 – High-grade bond issuers, including Apple Inc. and International Business Machines Corp., geared up early Tuesday for primary action over the day.

In addition, Manulife Financial Corp. announced that it sold C$300 million of non-cumulative rate reset class 1 preferred shares with a 5.6% annual dividend for the initial period ending June 19, 2021. RBC Capital Markets (Canada) Ltd., Scotia Capital Inc. and TD Securities Inc. were the lead managers.

In the secondary market, Morgan Stanley & Co. Inc.’s 3.875% senior notes due 2026, which headed out about 14 basis points weaker on Friday, traded after the Presidents Day holiday 3 bps better.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 improved 11 bps from Friday’s session.

The three-month Libor yield was unchanged over the morning at 62 bps.

Morgan Stanley improves

Morgan Stanley’s 3.875% notes due 2026 firmed 3 bps to 201 bps offered in secondary trading, a market source said.

The notes traded late Friday afternoon about 14 bps weaker at 211 bps bid.

Morgan Stanley sold $3 billion of the notes (A3/BBB+/A) on Jan. 22 at a spread of 185 bps over Treasuries.

The financial services company is based in New York City.

Anheuser-Busch tightens

Anheuser-Busch’s 3.65% notes due 2026 firmed about 11 bps from secondary trading on Friday to 156 bps offered early Tuesday, according to a market source.

The company sold $11 billion of the notes (A2/A-) on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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