Morgan Stanley Leads Wall Street Bond Issuance After 45% Revenue Surge

Morgan Stanley has taken the lead among the six major Wall Street banks by issuing U.S. investment-grade bonds shortly after releasing its first-quarter financial report. The bank plans to issue these bonds in up to five tranches, with the longest-term 11-year bonds potentially yielding 1.45 percentage points more than U.S. Treasuries.

Last Friday, Morgan Stanley announced strong first-quarter results, with equity trading revenue hitting a record $4.13 billion. This represents a 45% year-over-year increase, surpassing market expectations. The bank, along with other major Wall Street institutions, has benefited from the market volatility caused by the trade war initiated by the former U.S. President. JPMorgan Chase and Goldman Sachs also reported record first-quarter equity trading revenue.

Morgan Stanley is one of five high-rated issuers planning to issue new bonds on Monday. Companies are taking advantage of the current stability in the risk asset market to issue debt. JPMorgan Chase and Wells Fargo are also expected to issue new bonds on Monday, while Goldman Sachs may announce its bond issuance plans following the release of its earnings.

This wave of bond issuance comes as companies seek to capitalize on favorable market conditions. The syndicate department has slightly reduced this week's issuance forecast due to increased uncertainty from U.S. tariffs, with some companies choosing to postpone their financing plans until after Easter.