Apple Tapping US High-Grade Bond Market With $5 Billion Deal
Apple Inc. is selling debt in the US blue-chip bond market Monday as a flood of borrowers look to raise cash before key inflation readings are released later this week. The $5 billion deal is expected to come in as many as five parts, according to a person familiar with the matter. The longest portion, a 30-year bond, could yield 135 basis points over comparable Treasuries, the person said. The deal is “going to be very well received by the market” because “we have seen quite a lot of demand for high quality fixed income,” Rob Waldner, chief fixed income strategist and head of macro research at Invesco, said on Bloomberg TV.
Dealers surveyed by Bloomberg are expecting $30 billion to $35 billion of US high-grade corporate bond sales this week as corporate debt markets show signs of stabilizing. The sale will be the first for Apple since it sold $5.5 billion to fund buybacks and dividends in August. As many as 15 borrowers could emerge to sell debt Monday, looking to lock in funding before the release of consumer price index and producer price index data slated to come Wednesday and Thursday. Proceeds from Apple’s sale will be used for general corporate purposes. That could include stock repurchases, dividend payments, working capital, capital expenditures, acquisitions and repayment of debt, the person said. Representative for Apple did not immediately respond to a request to comment. Apple is the second mega-cap tech issuer to sell bonds after reporting earnings. Facebook parent Meta Platforms Inc. raised $8.5 billion in its second ever bond sale last week.
https://www.bnnbloomberg.ca/apple-tapping-us-high-grade-bond-market-with-5-billion-deal-1.1917259
from what I saw they got $1B inflows for this announced in April-Goldman holds the accounts
Apple Card’s new high-yield Savings account is now available, offering a 4.15 percent APY
https://www.apple.com/newsroom/2023/04/apple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy/