Following Goldman Sachs Group, Inc. (GS.US) and JP Morgan (JPM.US), Morgan Stanley (MS.US) has launched a multi-tenor investment grade bond financing.

Morgan Stanley (MS.US) has started promoting investment-grade bonds with up to five different maturities. This is the third similar transaction conducted by major Wall Street banks this week following the release of their third-quarter earnings. According to sources, discussions on the pricing of the longest 11-year maturity bond in this batch show a yield about 1.15 percentage points higher than comparable US Treasury bonds. The source, who requested anonymity as they were not authorized to speak publicly, also mentioned that the funds raised will be used for general corporate purposes. This transaction comes after Goldman Sachs Group, Inc. issued $10 billion in bonds on Tuesday and JPMorgan Chase issued $5 billion in bonds on Wednesday. Earlier, the third-quarter earnings of the six largest US banks were generally strong, but on Thursday, two regional banks disclosed fraud in loans provided to troubled commercial mortgage-backed securities funds, raising concerns about the stability of some banks. In the market environment, the average yield on investment-grade bonds in the US fell to a one-year low of 4.69% on Thursday, with spreads still at historic lows of less than 0.8 percentage points, indicating that current financing costs remain attractive for high-rated borrowers. It is worth noting that data shows that high-grade bond issuances are rare on Fridays, with issuance on that day accounting for only about 1% of the total supply for the year.