Morgan Stanley is joining its peers in issuing bonds after earnings, adding to a record borrowing spree for Wall Street's biggest banks.
The bank is selling unsecured bonds in three parts, which may total about $6 billion, according to separate people with knowledge of the matter. They're all structured as fixed-to-floating rate notes, and proceeds are earmarked for general corporate purposes, according to one of the people, who asked not to be identified as the details are private.
A representative for Morgan Stanley didn't immediately respond to a request for comment on the targeted deal size.
Banks typically tap the market after quarterly earnings, and they're coming out in full force with borrowing costs near the lowest levels in years. The expiration of relief related to supplementary leverage ratios could also be spurring issuance.
J.P. Morgan Chase sold $13 billion of bonds on April 15 in what was the largest bank bond sale ever, only for Bank of America to borrow $15 billion the next day. Goldman Sachs Group issued $6 billion, while Citigroup may also come forward, according to Bloomberg Intelligence analyst Arnold Kakuda.
Separately, J.P. Morgan is also tapping the sterling market Monday.
Morgan Stanley is the lead manager of its bond sale, while CastleOak Securities, Ramirez & Co. and Mischler Financial Group are also managing the offering, one of the people said.
