Morgan Stanley Joins Other Banks in Rush to Raise Fresh Funding

Morgan Stanley is adding to the recent wave of bank bond sales in the US investment-grade market on Wednesday as lenders emerge from earnings blackout periods.

(Bloomberg) — Morgan Stanley is adding to the recent wave of bank bond sales in the US investment-grade market on Wednesday as lenders emerge from earnings blackout periods.

The bank is in the market with a four-part deal that’s expected to price today, according to a person familiar with the matter, who asked not to be identified as the details are private. Initial pricing discussions for the longer dated portion of the offering, an 11-year fixed-to-floating rate note, may yield in the area of 1.85 percentage points over Treasuries.

Morgan Stanley’s deal is the latest in a deluge of transactions from banks that have reported quarterly earnings. This reporting season has seen JPMorgan Chase & Co. sell a $4.5 billion dual-tranche deal while Wells Fargo & Co. double-dipped this week, pricing $1.725 billion of perpetual notes Monday followed by a jumbo $8.5 billion two-tranche trade on Tuesday.

Yesterday’s transaction from Wells Fargo marks the bank’s largest self-led offering on record. In the past year, the bank has come to the US primary market five times for a total of $22.475 billion, data compiled by Bloomberg show.

Morgan Stanley didn’t immediately respond to a request for comment.

–With assistance from Michael Gambale and Brian Smith.

More stories like this are available on bloomberg.com