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Breakingviews: Desirable iOUs?

Monday, Apr 29, 2013 - 02:50

April 29 - Breakingviews columnists discuss Apple's plans to fund shareholder payouts partly with debt issuance that could run to a bank-like $20 bln a year.

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Apple said last week they -- gave. Hundred billion dollars back to settle this by the end of -- fifteen that's about double what they originally said. But then it they have lots of cash but it's not all available in the US -- -- to borrow money and Agnes as you put it out on a scale that that it's almost unprecedented. -- -- the exact timing tech committed to start coming into the mark -- I think 2009 Microsoft came in and again I it's this issue of like having cash trapped overseas interest rates are ridiculously well why companies leak stuff. Usually it motivated yeah cash but anyway with the department is because a lot of it is -- yes and those are delivering -- tax you know incentives to borrow running interest rates are really loudly and -- -- visitors are we talking about government so we just assuming that. The increase in the expanded you know. -- to shareholders is going to be Barr Atlanta 55 billion dollars right now and listening this -- is roughly exit exam goes the Prado we've seen like -- think -- -- -- with like five billion dollars and one I mean it you know but again we're so -- -- -- just break it down and talks like that you're talking about 5000000004. Times a year with Rainier it's a lot physically mentally after that is kind of the kind of pace of the big banks and banks and then for this for example but it's even. -- -- -- -- a certain amount of like you know again it's apple that the coolness factor and also -- it's highly rated so I think there are investors who do want to just -- -- -- -- and I don't afterward about the fall like they did with some sovereign. That -- can -- make its bonds as cool as it's prudent to have. Should it be to. They shouldn't you know necessarily have to edit it initially it for. I was run -- investors love. First they go crazy whenever -- that you -- mattress right and flip abortive first five billion dollars -- -- 150 billion dollars in cash on the balance that sends a pretty safe yeah I mean because -- the worst case what what does that what do you think his friends cash back into -- 20% at every evidence that accidentally so for awhile they can do they can just almost coast born and introduce these things that you find. The problem is of course. Is that it's not just. We're seeing hundred billion by 2015 it's not as if there has stopped returning cash to investors twenty Tina Brown -- to borrow more money point. And so then had -- maintain in the interest. And that will be the question. Maybe they could do something like -- David I've suggested he's cracks me up. Nobody wanted some so -- that pay a specific dividend and he thinks that can push up about you than you they could do something like maybe they think he's like floating rate notes that in communities. Bonds different currencies mean they have lots of different types of things they could use that as a okay will be Kabila -- a 150 billion dollars and the how quickly it starts looking like a bank and we will have -- breaking news to work.

Breakingviews: Desirable iOUs?

Monday, Apr 29, 2013 - 02:50

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