Why Apple Is Borrowing $7 Billion While Sitting on a $200 Billion Cash Pile

  • Ultra-cheap interest rates luring the most cash-rich companies
  • Record numbers of issuers seizing the opportunity to borrow
Apple borrowed $7 billion in its first bond sale in nearly two years. Bloomberg’s Molly Smith reports.Source: Bloomberg
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Apple Inc., one of the most cash-rich companies in the world, is still looking to get a piece of the ultra-cheap money that’s up for grabs in the bond market.

With investment-grade bond yields hovering near record lows, it’s tempting even for Apple -- with more than $200 billion of cash and investment securities on its books -- to see what investors will lend it. Turns out that number is $7 billion, or just over 3% of its current coffers.