Apple Bond Offering: What is the deal with the bonds that Apple Inc. (NASDAQ:AAPL) has auctioned off? Like many, you are probably wondering how the process unfolded and where things are headed moving forward.
We recently touched on this story, stating that Apple “set records with its $17 billion offering of bonds, making it the largest corporate bond offering ever.”
With all this in mind, there are some things that bond investors need to be aware of.
A recent CNBC video took a closer look at how things turned out for Apple Inc. (NASDAQ:AAPL) during its first day of bond trading.
Here is what new correspondent Seema Mody had to say:
“Today is the first official day that Apple bonds can actively trade. And according to Bonds.com, Apple’s entire bond issue today is seeing strong demand making up roughly 68 percent of the telecom media and technology sector bond volume.”
Before we go any further, take a closer look at that number: 68 percent. This just goes to show you that investors were anxious to finally dig in.
Mody went on to add the following:
“Apple’s ten year note, which yields 2.4 percent in particular is seeing strong demand. $240 million of Apple’s 10 year bond has been traded which shows that rather than just sitting on an Apple bond and waiting for it to mature, fixed income investors are actively trading these notes which means you can probably expect the spread between Apple’s 10 year and the US treasury note to tighten going forward.”
This may seem like a lot to take on, but Mody summed things up by saying:
“The bottom line here is we are seeing strong demand from fixed income investors on both the retail side and the institutional side coming into play with this Apple bond.”
While this was a brief video, Mody covered quite a bit of news regarding the Apple Inc. (NASDAQ:AAPL) bond offering. Most importantly is the fact that the demand is quite strong at this time.
This is a story that is definitely worth keeping an eye on in the near future. We will be sure to keep you up to date on the latest news regarding Apple Inc. (NASDAQ:AAPL)’s corporate bond offering.
If you want to view the CNBC video in its entirety, you can do so on the following page: