Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s What Michelle Davis Thinks About Apple Inc. (AAPL) Issuing Bonds

Apple Inc. (NASDAQ:AAPL) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A), two of the world’s largest companies, are the latest companies which have boosted bond issuances to a record high as the two companies have just issued $18 billion in bonds, according to Michelle Davis.

In a discussion on Bloomberg’s First Up, Davis also suggests that Apple, which owns one of the most profitable businesses ever, is issuing bonds because it is a simpler way for the company to have cash on hand inside the United States. This move is being made instead of repatriating money the company has outside of the country.

“Today we had two of the world’s largest companies – Apple, the most valuable company on the planet, and Royal Dutch Shell which is about the fourth largest energy company – coming to the market issuing $18 billion in bonds and that puts this year’s issuances at almost 9% more than last year and last year was already a record year. You’re seeing these company’s racing the clock against the [Federal Reserve], they want to lock in low interest rates while they can,” Davis says.

According to the Bloomberg corporate finance reporter, most people are expecting the Fed to raise interest rates later this year and Apple Inc. (NASDAQ:AAPL) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) want to take advantage of the lower rates while they are still available.

“Apple is cash-rich but it has a lot of its money overseas. Instead of repatriating that and having to deal with taxes and tax codes, it makes a lot more sense, at least when rates are low, for it to issue debt because they can do it so cheaply,” Davis tells her colleagues at Bloomberg, adding, “They want to use that money to fund some shareholder payments. Apple has faced some pressure recently to give money back to shareholders so this is the cheapest way for them to do that.”

Apple Inc. (NASDAQ:AAPL), she adds, and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) are great places to put money in at the moment since these are two great names offering investment-grade debt which are made more attractive by the high yield on 30-year treasury bills. The yield is at a 5-month high, Davis says, which means Apple and Shell have to pay a bit more to entice investors to buy their bonds.

Apple, is AAPL a good stock to buy, NASDAQ:AAPL, Royal Dutch Shell, NYSE:RDS.A, Michelle Davis, bonds, treasury bills, repatriation, taxation, shareholder return,

David Einhorn’s Greenlight Capital owned about 8.61 million Apple Inc. (NASDAQ:AAPL) shares by the end of 2014.

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said ‘I lost money by EXACTLY following your stock picks’. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Suggested Articles:

New World Order Facts

Richest Cities In the World

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.