Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup
  • Dick Young’s Safe America

Apple Owns More Corporate Bonds than the Biggest Funds Own

October 26, 2017 By Jeremy Jones, CFA

Apple has hordes of cash overseas. CEO Tim Cook says he won’t bring the cash back until better tax rates are available. In the meantime, Apple has amassed a pile of corporate debt holdings larger than the top bond funds. Bloomberg’s Claire Boston reports:

If Apple Inc. were a bond fund, it would dwarf the competition.

The iPhone-maker has $148 billion of its record $257 billion cash pile invested in corporate debt alone, according to a company filing from Wednesday. That’s enough to buy all the assets in the world’s largest fixed-income mutual fund, the Vanguard Total Bond Market Index Fund, which has about $145 billion of assets including company, government and mortgage bonds.

Like many technology companies, Apple has resisted transferring the money it earns abroad back to the U.S. to avoid triggering corporate income taxes on the earnings. Instead, the Cupertino, California-based company invests in corporate bonds and other assets like money market funds and U.S. Treasuries.

With more than 90 percent of its war chest abroad, the company regularly issues bonds of its own to help fund programs like share buybacks and capital spending. Apple said Thursday it’s selling debt in as many as six parts to support a 63-cent dividend and an increased stock-repurchase program.

Apple and other cash-rich companies are holding out, hoping that they may soon be able to bring their cash home at a lower tax rate. President Donald Trump’s tax plan includes a repatriation provision, though it didn’t specify a rate. He proposed a 10 percent levy when campaigning, and Treasury Secretary Steve Mnuchin has said the rate would be “very competitive.”

Apple’s holdings, managed by its Braeburn Capital Inc. unit in Reno, Nevada, may be large enough to move markets if the company makes any big shifts in its allocations. Apple has typically favored safer, shorter-dated bonds from high-rated financial issuers and other companies.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Junk Bonds Get Trashed
  • Indexing’s Biggest Failure
  • Highest Corporate Bond Yields in Five Years
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored - January 19, 2021
  • Jim Simons’s Renaissance Technologies vs. Internet Forum Traders - January 15, 2021
  • Biden Plans to Spend Trillions More on COVID-19 Stimulus - January 14, 2021

Search Young Research

Most Popular

  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Do You Remember When NASDAQ Dropped by 82%?
  • The Power of a Compound Interest Table
  • The Highest Yielding S&P 500 Stocks
  • Gavekal Chairman: Renewables Bubble is "Stupidest" Ever
  • Don’t Be on Their Radar, Get Out of Debt Now
  • There's Always a Way Forward for Americans Like YOU
  • Overtaken By Nvidia, Intel Fires Bob Swan
  • Stocks: Are You Sticking Your Neck Out Too Far?
  • Democrats Eager to Get Back to Protecting the Rich by Ending SALT Deduction Cap

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • The Recklessness of Arnold Schwarzenegger
  • Warmongering Firestarters Victoria Nuland and Samantha Powers Back
  • Smith Family Robinson in Live Free or Die, NH
  • Dick Young’s Safe America: Chapter 1, Part I
  • RCY’s Brand New Investing Program – 100% Swiss
  • Swiss Francs, a Store of Value
  • Insurrection Was the Furthest Thing from Trump’s Mind
  • Who Are Those Urging Violence?
  • Are $2,000 Checks Going to Rebuild NYC?
  • An Alert for Warm Weather, Wine Loving Mavens.

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.