{"id":282,"date":"2013-09-17T07:27:52","date_gmt":"2013-09-17T07:27:52","guid":{"rendered":"http:\/\/www.asadkarim.co.uk\/?p=282"},"modified":"2013-09-17T07:27:52","modified_gmt":"2013-09-17T07:27:52","slug":"the-17-billion-apple-bond-potential-losses","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=282","title":{"rendered":"The $17 Billion Apple Bond&#8230;.potential losses"},"content":{"rendered":"<p>In April this year, Apple raised <strong>US$17 Billion<\/strong>, by issuing bonds. They were raising cash as a part of a programme to return cash to shareholders via the most tax efficient process.<br \/>\nThe issue was done in <strong>6 blocks<\/strong> (parts), these offerings from Apple included benchmark maturities of <em><strong>three-year, five-year, 10-year and 30-year fixed rate bonds, along with three-year and five-year floating rate notes<\/strong><\/em>.<\/p>\n<p>Now what is curious, and not widely reported (you have a dig a bit to find it, all public), that the <strong>30 year bond issue<\/strong> was for <strong>$3 billion<\/strong> is now underwater.<br \/>\nIssued with an interest rate of <strong>3.85%<\/strong>.<\/p>\n<p>At issuance it is worth <strong>100 Cents<\/strong> on the <strong>Dollar<\/strong>.<\/p>\n<p>Today\u00a0 nearly 5 months on after issue, the 30 year Apple bond is\u00a0trading on the bond market (fixed income) at about <strong>95 Cents<\/strong> on the <strong>Dollar<\/strong>. Yes.<\/p>\n<p>So now with these bonds that are traded are worth $2.85 Billion.<br \/>\nThus investors are now nursing paper losses on these bonds. Incredible.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In April this year, Apple raised US$17 Billion, by issuing bonds. They were raising cash as a part of a programme to return cash to shareholders via the most tax efficient process. The issue was done in 6 blocks (parts), these offerings from Apple included benchmark maturities of three-year, five-year, 10-year and 30-year fixed rate [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-282","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=282"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/282\/revisions"}],"predecessor-version":[{"id":283,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/282\/revisions\/283"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}