Midday Commentary: Investment-grade spreads firm; Apple better; Morgan Stanley eases

By Cristal Cody

Tupelo, Miss., April 29 - The investment-grade market geared up for a busy session on Tuesday with deals expected to price from Apple Inc., El Paso Pipeline Partners, LP and others.

Spreads opened the week wider but tightened by Monday afternoon and continued to firm early Tuesday with financial paper mixed in midday trading, a source said.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 66 bps on Monday.

Apple's bonds (Aa1/AA+/) brought in 2013 rose moderately in early trading, while Morgan Stanley's 3.875% notes due 2024 eased 3 bps, according to market sources.

Apple edges up

Apple's 2.4% notes due 2023 edged up to 92.96 in midday trading from 92.78 on Monday, according to a market source.

The company sold $5.5 billion of the notes on April 30, 2013 at 99.867 to yield 2.415%.

Apple's 3.85% notes due 2043 rose to 90.16 early Tuesday from where the notes headed out at 89.40 on Monday, according to a market source. Apple sold $3 billion of the bonds in the April 30, 2013 offering at 99.418 to yield 3.883%.

The computer and mobile communications device company is based in Cupertino, Calif.

Morgan Stanley softer

Morgan Stanley's 3.875% notes due 2024 eased 3 bps to 133 bps offered early Tuesday, a source said.

The notes (Baa2/A-/A-) priced in a $3 billion offering on Wednesday at Treasuries plus 130 bps.

The financial services company is based in New York City.

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