Apple Launches iBond: Record Bond Issuance

Apple has decided to issue bonds called iBond, and the market has already reacted with a very strong demand for the product.
It is understood that the aforementioned bond issuance could already lead to a collection of as much as 40 billion dollars, compared to Apple’s forecasts which amount to a figure between 10 and 15 billion dollars.
iBond is a bond plan that will be launched in six tranches, apparently under the supervision of Goldman Sachs and Deutsche Bank.
Such market demand could therefore lead Apple to raise the figure to approximately 20 billion dollars, and this would become a true record in terms of collection and therefore issuance in Corporate America.
All of this is thought-provoking and should lead to reflection on the effects of this maneuver: the bond issuance will probably serve to reassure Apple shareholders, who will thus see their dividends paid out.

It is known that in recent weeks Apple stock has begun to lose value, since the results of the first quarter were made official: there has been a slight downturn compared to the past, and this has disappointed investors.
The situation is anything but tragic, but from a constantly growing company like Apple, an even more positive result was expected.
Therefore, it is probable that Cupertino has decided to revitalize dividends and rely on share buybacks with this bond issuance, thus having the approximately 100 billion dollars needed to reward shareholders.
The market’s response to this move appears to have been very positive, also because Apple is a giant that can boast a rather rosy situation and no debt.
After all, repatriating liquidity – “resident” in foreign accounts – would be too costly for Cupertino, making the iBond bond route the best option, at the moment.