Morgan Stanley

  • 26 Mar 2004
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Rating: Aa3/A+/AA-
Amount: $4bn
Maturity: April 1, 2014
Issue price: 99.129
Coupon: 4.75%
Spread at launch: 115bp over the 4% February 2014 UST
Launched: Tuesday March 23
Lead mgr: Morgan Stanley

Market appraisal:

"...it certainly took us by surprise that they did such size. To their credit it seemed to go well. They put a little bit of a premium there, which we could argue was about 10bp, excluding the extra spread pickup they would pay over comparables that are senior unsecured debt.

This is a subordinated debt issue and Morgan Stanley mostly has senior unsecured notes as comparables."

 "...it traded around 115bp/114bp off the block (from a launch spread of 115bp). At a size of $4bn this is a big piece of paper to get out of the way for a brokerage firm."

"...this is the second broker dealer this year to do a subordinated debt deal. Goldman did one a month ago.

Why all of a sudden is there a need for capital at broker dealers? We assume they saw this as an opportune time to move down to sub debt because the cost of doing so is not that great.

They paid 20bp over where their 10 year senior notes trade, so part of that premium is for subordination and part is a new issue concession."

  • 26 Mar 2004

All International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 92.59 388 8.96%
2 Citi 85.30 278 8.25%
3 BofA Securities 63.15 265 6.11%
4 Barclays 58.01 223 5.61%
5 Deutsche Bank 55.74 184 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 60.87 123 14.06%
2 Credit Agricole CIB 28.59 93 6.60%
3 Santander 25.41 90 5.87%
4 JPMorgan 23.88 61 5.52%
5 UniCredit 21.51 103 4.97%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 2.07 11 10.42%
2 BofA Securities 1.40 6 7.01%
3 Citi 1.37 7 6.87%
4 Morgan Stanley 1.36 6 6.85%
5 JPMorgan 1.31 7 6.59%