Wall Street Giants Fuel Bond Market Surge: Morgan Stanley Leads with $8 Billion Raise

Wall Street Bonds Surge

Following recent earnings reports, several major banks have entered the bond market for fundraising. Morgan Stanley has taken the lead, raising $8 billion through bond issuance, exceeding the initial target of $6.5 billion.

Deal Size and Market Response

The bank is offering bonds with maturities ranging from 4 to 15 years. The longest-dated bond, a $1.5 billion note maturing in 2041, saw its yield spread over Treasuries narrow from 1.4 percentage points to 1.17 percentage points.

• Debt underwriting revenue reached a record $785 million in the fourth quarter.
• JPMorgan started the wave earlier this week with a $6 billion bond offering that attracted over $35 billion in orders.
• Wells Fargo and Goldman Sachs followed, targeting at least $5 billion and $12 billion, respectively.