Apple’s new iBonds selling like hotcakes

“The new must-have Apple accessory: its bond debt,” Ben Eisen reports for MarketWatch.

“Demand for the technology company’s landmark $17 billion in bonds didn’t stop at issuance. The bonds traded Wednesday in high volumes with prices stuck above their offering levels,” Eisen reports. “Buying and selling of Apple bonds represented more than one in every five trades in the high-grade corporate bond market Wednesday as of 2 p.m., according to MarketAxess. Some $1.85 billion of Apple trades took place Wednesday against total trading of $9.08 billion.”

Eisen reports, “That number was even higher, at 23.5%, earlier Wednesday morning as investors looked to buy Apple debt, said Jody Lurie, corporate credit analyst at Janney Montgomery Scott. ‘It’s very interesting to watch, because I can’t think of an offering that’s been so active in the morning,’ she said. ‘Everybody wants a piece of it.'”

Read more in the full article here.

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    1. Corporates are traded in the secondary market. Your broker should have a way for you to access it.

      I have my money at Charles Schwab, and it’s just like buying stock, I go to the Bond section, look up Apple.

      I just did it and 4 notes show up, the 3, 5, 10 and 30 year fixed rate notes.

      I don’t know why any individual would want to buy a note, when you can have a Treasury. I understand why institutional investors might want an investment grade corporate, but not an individual.

      1. The bonds from Apple have better rates and Apple is much more likely to not go bankrupt than the US Government. Plus, your money could go to a company that’s changing the world rather than a country that’s fucking it up.

        In any event, your comment is ludicrous. Probably half of Americans have bond funds, and the bonds in those funds are a mix of corporate, municipal, and government. There’s no reason why an individual should shun corporate and only buy government. It’s like saying “why would anyone buy stock when you can have a savings account?”

  1. @laughing_boy48, when a company goes under bondholders are paid first before stockholders. Therefore, so investor that are hesitant to buy stock may want to buy bonds and if they tank they are in line before stockholders.

    @iinnsbrucktaos, set up an online brokerage account and get some Apple bonds.

    1. Even so, LB48 has a valid point that you failed to address, Jay. The Apple debt is being issued at a grade that rates is nearly risk-free. If the company were doomed, then these would be junk bonds, not investment grade paper. Given the grading of Apple debt and the fervor of investors to purchase the Apple corporate bonds, the only reasonable conclusion is that Apple is not doomed.

      1. But why wouldn’t it still be doomed? Tim is still in charge; the company is still making more money than everyone else combined; the new MacPro still isn’t out; iOS still is all skeumorphic or whatever; Maps is still, well, whatever; Samsung is still paying edward to post here…. I mean, really, all the signs are still that Apple is doomed!

          1. oh, you’ll hear it again when WS extracts its next extortion installment from …after a repeat FUD campaign drives down the stock value again so little Timmy will comply by bending over for another Goldman-Sachs buttfuck. After all, it worked so well the first time.

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