Apple Leads Bond Market Back to Life

Nasdaq ^ | February 16, 2016 | Dow Jones Business News

[Swordmaker]

Apple Inc. was leading a slate of new bond sales on Tuesday after a nearly two-week lull, suggesting investors are still eager to lend to big blue-chip companies despite concerns that a global recession could be developing. The tech giant, a prolific issuer in recent years as its overseas cash pile has grown, set the size of its sale at $12 billion early Tuesday afternoon, the high side of investor expectations. Apple has been widely followed in the debt market since it sold $17 billion in 2013, which at the time ranked as the biggest corporate-bond sale on record. Apple is selling bonds Tuesday alongside firms such as International Business Machines Corp. and Comcast Corp, taking advantage of an improved market tone as U.S. stocks rallied. Markets have been whipsawed in recent weeks amid worries that a slowdown in China and plunging commodity prices could lead to a global recession and drag on the U.S. But the bond deals are a sign that investors are still relatively optimistic about U.S. economic fortunes. Bond sales got off to a solid start earlier this year, with Anheuser-Busch InBev NV selling $46 billion in January, a deal that ranked as the second-largest corporate-bond sale on record. But sales dropped off last week, and investment- grade corporate debt sales are tracking below last year's pace. So far, $134 billion has been sold, compared with $157 billion last year at this time, though Tuesday's deals should boost this year's figure, according to data provider Dealogic. Highly rated corporate bond sales in the U.S. hit record levels in each of the past four years, according to Dealogic, driven by low benchmark interest rates set by policy makers who hoped it would help boost the economy after the financial crisis.

[Swordmaker]

Apple issues $12 Billion in new bonds. With many European banks requiring depositors and investors to actually pay them 0.25% per annum negative interest to deposit funds in their banks, it stands to reason that buying bonds that really pay a good guaranteed return is a better idea to park one's money. -- PING!

Thanks to SunkenCiv for the heads up.

Apple sells $12 Billion in Bonds
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[roadcat]

buying bonds that really pay a good guaranteed return is a better idea to park one's money.

Any idea what the return is on those bonds? I haven't been making much of anything in bonds, as compared to stocks (and not much on stocks lately).

[Dr. Ursus]

We’re watching the Steve Jobs at this time.