“This coming weekend, Saturday, May 3, 2014, marks the one-year anniversary of the start of the great bond market sell-off of 2013,” Nick Cawley writes for The Wall Street Journal. “That pullback saw global fixed income markets slammed lower as the U.S. Federal Reserve decided it was time to scale back on its $85 billion a month asset purchase program.”
“It also marks the anniversary of the second-most recent appearance of one of the bond market’s rarest corporate issuers, Apple, notes Anthony Valeri, investment strategist at LPL Financial,” Cawley writes. “This week, Apple announced another blockbuster bond issue to take advantage of low yields in an opportunistic issuance to benefit stockholders. Is Apple telling us something or just riding a cheap funding wave?”
Cawley wonders, “Is Apple the harbinger of a bond market crash or just extremely clever/lucky with its timing?”
Read more in the full article here.
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