Morning Commentary: Investment-grade bonds mixed; Verizon firms; Morgan Stanley mostly flat

By Cristal Cody

Tupelo, Miss., Nov. 20 – High-grade corporate bonds were mixed in early trading on Thursday with light primary activity expected for the day, according to market sources.

The Markit CDX North American Investment Grade series 23 index ended the previous session flat at a spread of 67 basis points.

Verizon Communications Inc.’s 3.5% senior notes due 2024 traded unchanged to 2 bps better on the week in the secondary market, a source said.

Morgan Stanley & Co. Inc.’s 4.35% subordinated notes due 2026 were quoted flat to 1 bp weaker in secondary trading.

Verizon improves

Verizon’s 3.5% notes due 2024 (Baa1/BBB+/A-) traded flat to 2 bps tighter at 137 bps offered, a market source said.

Verizon sold $2.5 billion of the notes on Oct. 22 at a spread of Treasuries plus 135 bps.

The telecommunications company is based in New York City.

Morgan Stanley flat to weaker

Morgan Stanley’s 4.35% subordinated notes due 2026 traded flat to 1 bp wider at 210 bps offered, according to a market source.

Morgan Stanley sold $2.25 billion of the notes (Baa3/BBB+/BBB+) on Sept. 3.

The financial services company is based in New York City.

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