“There are likely three reasons Apple is turning to Swiss investors for cash,” Ben Edwards reports for The Wall Street Journal.
“One: the lure of cheap rates. Switzerland’s government debt yields below 0% all the way out to 11 years, meaning corporate bonds – the price of which is typically linked to government debt – is super cheap too,” Edwards reports. “Two: Apple can use proceeds from debt sales to fund buybacks and dividends, a less expensive option than using cash earned outside the U.S., which would be taxed if brought back from overseas.”
Edwards reports, “And third: Selling bonds in Switzerland allows Apple to tap a new set of fixed-income investors.”
Read more in the full article here.
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