Morgan Stanley is entering the bond market just after announcing first-quarter revenue that surpassed expectations, following the lead of competitors JPMorgan Chase & Co. and Wells Fargo & Co. in accessing the US investment-grade market post-earnings, Bloomberg reported. The bond sale by Morgan Stanley is structured into as many as four segments, as disclosed by a source familiar with the matter. The longest segment, an 11-year security, is anticipated to offer a yield of 1.45 percentage points above Treasuries, according to the same source who spoke with Bloomberg. The proceeds from the offering will be allocated for general corporate purposes, with Morgan Stanley acting as the exclusive underwriter for the transaction, the source further noted. Notably, the bank's trading arm reported revenue of $5.33 billion, exceeding analyst forecasts, following robust earnings from traders at Goldman Sachs Group Inc. Meanwhile, the wealth unit recorded $6.88 billion in revenue, surpassing analysts' projections. With narrow bond spreads and robust investor demand enticing Wall Street's major banks, there's an anticipation of heightened borrowing activity this month post-earnings. It's projected that the six largest lenders will collectively issue up to $33 billion in corporate bonds this month. JPMorgan and Wells Fargo initiated this surge in issuance on Monday, raising a total of $13.25 billion in new debt.
