Morning Commentary: Kraft Heinz bonds firm; Morgan Stanley paper improves; CDX flat

By Cristal Cody

Tupelo, Miss., Aug. 14 – Bonds from Kraft Heinz Co. and Morgan Stanley tightened in secondary trading, while credit spreads opened Friday’s session unchanged, market sources said.

Long bonds from Kraft Heinz have been active in the secondary market over the week and traded better early Friday.

Morgan Stanley’s 4% senior notes due 2025 firmed 3 basis points.

The Markit CDX North American Investment Grade index was unchanged over the morning at a spread of 77 bps.

Kraft Heinz firms

Kraft Heinz’s 5.2% bonds due 2045 firmed 5 bps to 203 bps offered in the secondary market, a source said.

Heinz sold $2 billion of the bonds (Baa3/BBB-/) at a spread of 200 bps over Treasuries on June 23 as part of a $10 billion seven-part deal ahead of the merger with Kraft.

Kraft’s acquisition of Heinz closed on July 2.

The combined food and beverage company is based in Pittsburgh and Northfield, Ill.

Morgan Stanley better

Morgan Stanley’s 4% notes due 2025 were seen 3 bps tighter at 159 bps offered, a market source said.

Morgan Stanley sold $3 billion of the notes (A3/A-/A) on July 20 at Treasuries plus 165 bps.

The financial services company is based in New York City.

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