“Apple Inc. (AAPL) could have hardly picked a better time to borrow an unprecedented $17 billion in its first bond sale since 1996,” Mary Childs reports for Bloomberg News.
“The world’s most valuable technology company is pocketing an initial $40 million in annual interest savings compared with current yields on the six bonds it sold, according to data compiled by Bloomberg,” Childs reports. “The yield on 10-year Treasury bonds, a benchmark for the entire fixed-income market, rose to 2.13 percent by the end of last week from 1.67 percent on April 30, the day of the offering, Bloomberg Bond Trader data show.”
Childs reports, “The iPhone maker will save $724 million compared with today’s rates over the life of the bonds, Bloomberg data show… ‘That’s real money, even to Apple,’ David Brown, a money manager who helps oversee $97 billion of fixed-income assets at Neuberger Berman in Chicago, said in a telephone interview. ‘I don’t know if it was insight or luck, but they timed the market very well, so they were able to capture some very attractive yields to finance their capital plan. Kudos to them.'”
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