Midday Commentary: Spreads unchanged; Apple long bonds firm; Morgan Stanley tightens

By Cristal Cody

Tupelo, Miss., May 5 - Investment-grade bond spreads were unchanged as the market opened on Monday ahead of issuance expected later in the session from companies including Caterpillar Financial Services Corp. and Waste Management, Inc., according to informed sources.

The Markit CDX North American Investment Grade series 22 index ended flat on Friday at a spread of 64 basis points.

In early trading on Monday, Apple Inc.'s existing long bonds are better from a week ago, according to a market source.

Morgan Stanley's 3.875% notes due 2024 were quoted 2 bps tighter early in the session, a source said.

Apple firms

Apple's 3.85% notes due 2043 (Aa1/AA+/) tightened to 95 bps offered in midday trading, a source said on Monday.

The bonds traded on April 28 at 104 bps bid, 101 bps offered.

Apple sold $3 billion of the bonds on April 30, 2013 at a spread of Treasuries plus 100 bps.

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

Morgan Stanley tightens

Morgan Stanley's 3.875% notes due 2024 traded 2 bps tighter from Friday at 123 bps offered in early trading, according to a market source.

Morgan Stanley sold $3 billion of the notes (Baa2/A-/A-) on April 23 at Treasuries plus 130 bps.

The financial services company is based in New York City.

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