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Did Apple Just Time The Bond Market Nearly Perfect (Again)?

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Apple Inc. (NASDAQ: AAPL) continues to hoard investors’ attention as it managed to raise a better-than-expected $6.5 billion through a corporate bond sale that took place on Monday. The idea behind this bond sale is funding share buybacks (about $130 billion by the end of 2015), while keeping the company’s overseas cash reserves intact.

Over the past couple of years, the company offered its bonds on two other occasions: April 2013, it had raised $17 billion, and April 2014, $12 billion. Similar to these times, investors are wondering: how come Apple’s bonds continue to outperform U.S. Treasury bonds?

Tim Anderson, managing director at TJM Investments shared his thoughts about this issue with Benzinga.

“I believe AAPL sold $3B to $4B of Corporate bonds on a day when the $US 10 year hit a 2 year+ low of 1.65%.” He continued, “I don’t have the specifics in front of me but my recollection is that when AAPL did their first bond sale in 2013 they very nearly nailed the top of the bond market then.”

Shares of Apple recently trade at $118.36, down 0.23 percent.

Latest Ratings for AAPL

DateFirmActionFromTo
Oct 2016Goldman SachsMaintainsBuy
Oct 2016Credit SuisseMaintainsOutperform
Oct 2016PiperJaffrayMaintainsOverweight

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Posted-In: Tim Anderson TJM InvestmentsAnalyst Color Bonds Offerings Buybacks Exclusives Analyst Ratings

 

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