Last Week's Bonds and Apple's Bond Price
Last week's new bond issues included one that's funding a capital expansion program and could even result in some job creation.
Other than funding some capex, other borrowers profiled were mostly refinancing debt or paying for aquisitions.
CAPS bonus sidebar: We've got an example showing that bonds, even high quality ones, aren't exactly risk free. On 4/30, Apple sold 10-year, 2.4% bonds at 99.867% of face value. The last trade on those bonds was 97.019%. IMHO, a nearly 3% drop in value in less than a month doesn't exactly point to high-grade bonds being a safe, secure place to put money. 'course, neither are stocks, commodities, real estate, ...
As always, comments and questions welcome here or at the article.
Fool on! Russ