Following the release of their earnings reports, JPMorgan Chase and Morgan Stanley are tapping the US high-grade bond market for funding.
This issuance continues a wave of financing by major Wall Street firms this quarter. The trend began with Goldman Sachs launching a $10 billion bond offering on Tuesday, with the bank also initiating a three-part euro bond issuance on Wednesday.
The quarterly results announced by major US banks this week generally surpassed analyst expectations, benefiting from robust market performance, sustained volatility, and a resurgence in merger and acquisition activity.
Concurrently, another inflation report that came in below expectations has further alleviated market concerns about imminent interest rate hikes from the Federal Reserve, propelling gains in both stock and bond markets.
JPMorgan Chase is set to issue a four-part bond offering, with maturities ranging from 4 to 15 years. The initial price guidance for the longest-dated bond is approximately 150 basis points above the yield on US Treasury securities.
Morgan Stanley is also issuing a four-part bond, with maturities spanning from 3 to 11 years. The initial price guidance for its longest-dated bond is around 130 basis points above the US Treasury yield.
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