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Apple Is Smart

iBonds + low Swiss interest rate = $$$$$$$
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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.

Sell some iBonds with a hilariously low interest rate, and use the proceeds to return some tax-free capital to investors. Easy.

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.

Apple’s Not-So-Secret Swiss Account [WSJ]
Apple Sells Two-Part Swiss Franc Bond [WSJ]


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