JPMorgan and Morgan Stanley both issue bonds for financing after strong earnings reports

JPMorgan Chase and Morgan Stanley are seeking to raise funds in the U.S. high-grade bond market after reporting strong earnings, continuing this quarter's financing boom among Wall Street giants. The financing wave began with Goldman Sachs launching a $10 billion bond issuance on Tuesday, followed by a three-part euro bond issuance on Wednesday. This week, large U.S. banks generally reported results that exceeded analysts' expectations, benefiting from robust market performance, sustained volatility, and a revival in M&A activity. Meanwhile, another inflation reading that came in below expectations further eased market concerns about an imminent Federal Reserve rate hike, boosting both equity and bond markets. According to sources, JPMorgan Chase will issue four tranches of bonds, with maturities ranging from four to fifteen years. The initial pricing guidance for the longest-dated bond is about 150 basis points above U.S. Treasury yields. Another source indicated that Morgan Stanley is also issuing four tranches of bonds with maturities between three and eleven years. As the source was not authorized to speak publicly, they requested anonymity. The initial pricing guidance for the longest-dated bond is about 130 basis points above U.S. Treasury yields.