"An Apple bond issue will likely be greeted with open arms by the investment community," he said.
Investors who bought Apple's bonds last year are sitting on substantial price losses as the iPhone maker issued its debt just before long term interest rates rose sharply last summer.
In terms of timing, Apple could not be faulted as it sold debt at very low yields and just before a big sell-off rattled the bond markets as the Federal Reserve indicated it wanted to start tapering its quantitative easing policy.
Investors who bought the long term bonds have seen their value drop sharply. Apple's 30-year bond is trading at a price of 90.36 (a yield of 4.45 per cent), down from its 101.97 high at the start of last May – a loss of a little more than 10 per cent.
"Apple came at the very top of the market," said Sabur Moini at Payden & Rygel. "That was great for the company, but not so much for the investors."
via apple - Google News http://ift.tt/1h6Rntn
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