Morgan Stanley has entered the US investment-grade market with an $8 billion bond sale, following its recent earnings report. As reported by AdvisorHub, this move allows the bank to capitalize on strong investor demand and secure lower yields compared to earlier in the month.
The bond sale includes four parts, with the longest being an 11-year security yielding 1.17 percentage points above Treasuries, down from initial discussions of around 1.4 percentage points. AdvisorHub reports that the proceeds from the sale will be used for general purposes, and Morgan Stanley is the sole underwriter of the deal.
According to AdvisorHub, this bond offering comes on the heels of a strong performance in Morgan Stanley's trading business, which posted the largest increase among its peers in the second quarter. This aligns with the trend seen at other major Wall Street banks, such as Goldman Sachs and JPMorgan Chase, which also exceeded earnings expectations.
Following their second-quarter earnings reports, JPMorgan, Wells Fargo, and Goldman Sachs raised a combined $16.5 billion. With Morgan Stanley's latest offering, the total volume from the six biggest banks is expected to surpass the 10-year July average of approximately $17 billion.
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