Apple leads maple bond surge to decade high

“Apple Inc.’s surprise foray into Canadian-dollar debt has pushed corporate issuance to a near-record with more companies expected to beat a path north in search of attractive borrowing rates,” Allison McNeely reports for Bloomberg.

“Foreign companies issuing in loonies have sold about C$15.2 billion ($12.2 billion) worth of debt this year — the busiest year for Maple bonds since 2007,” McNeely reports. “That’s helped drive sales in the Canadian market to about C$70.3 billion this year, just shy of the C$71.4 billion record set in 2013 for the same period, according to data compiled by Bloomberg.”

McNeely reports, “Cupertino, California-based Apple was able to sell C$2.5 billion of seven-year debt this month at a spread of 10 to 15 basis points tighter than in U.S. dollars on a swapped-equivalent basis, Liam O’Sullivan, a portfolio manager for RP Investment Advisors, which has C$4.3 billion in assets, said by phone from Toronto. ‘I think that’s a green light to any large, sophisticated U.S. issuers that want to diversify their funding program,’ he said. ‘I think they will look at the Apple transaction and think maybe this Canadian market is worth looking at.'”

Read more in the full article here.

MacDailyNews Take: Bring on U.S. corporate tax reform and the repatriation holiday!

Apple issues Canadian-dollar bond for first time – and sets new record – August 16, 2017
Apple preps first Canadian-dollar debt offering to reward shareholders – August 15, 2017
Apple preparing new euro bond sale to fund capital return program for shareholders – May 17, 2017
Apple issues $7 billion in corporate bonds – May 12, 2017
The fact that Apple has to issue bonds is a reminder of why urgent U.S. tax reform is needed – May 12, 2017
Apple borrows billions while sitting on massive overseas cash mountain – May 10, 2017
Why Apple is investing $148 billion in corporate debt – May 4, 2017
President Trump’s tax reform plan includes deep cuts in corporate taxes – April 26, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Apple has now amassed nearly $80 billion in debt – September 12, 2016


      1. Though GDP numbers are welcomed, how is one to interpret Bloomberg’s article today and others recently proceeding, “predicting” a looming bear market? Obviously, AAPL has the cash to endure negative forces and the P/E implies stability, but a material downturn affects all. Harvey’s all-time record cost, just below 1.0% of GDP, negates today’s GDP news and recovery of one of the nation’s healthiest economic states, could/will be extended.

  1. A big fat NO to a repatriation holiday. Giving it a limited time holiday implies that there’s something inherently wrong or unfair about it. But US taxation of overseas profits is just plain bad policy. It encourages companies to keep and invest their profits overseas in new factories, research facilities and jobs instead of the US. For this very reason no other developed nation has adopted this tax policy because it’s self defeating and stupid.

    Double taxation on overseas profits should be permanently eliminated.

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