People will buy anything with a “i” in front of it. Swiss sovereign debt actually comes with a guaranteed loss. Carl Icahn would like to see a few more dividend dollars and a few less Apple shares.
For Apple, the lure of issuing in Swiss francs is clear: Swiss government yields are negative as far out as 2027, with its 10-year government bond yielding negative 0.09%. Apple’s strong brand and high credit ratings—Aa1 from Moody’s Investors Service and AA+ from Standard & Poor’s—should make it an attractive proposition for yield-starved investors who have Swiss currency to put to work. That will make any funding raised ultracheap.