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Apple, Oracle Dump Bonds and Create $300 Billion Market Hole

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September 2018 edited September 2018 in The Bullpen

This seems to impact the Corporate bond market and the interest rate on the short end...one reason ST Corporate bond mutual fund's have dropped in price this year.

From the article:
Once the biggest buyers of short-dated corporate debt, Apple along with 20 other cash-rich companies including Microsoft Corp. and Oracle Corp. have turned into sellers. While they once bought $25 billion of debt per quarter, they’re now selling in $50 billion clips, leaving a $300 billion-a-year hole in the market, according to data tracked by Bank of America Corp. strategists. The reversal is adding pressure to a market already buffeted by Federal Reserve rate hikes. Yields on corporate bonds with maturities between one and three years have jumped 0.83 percentage point this year to 3.19 percent, close to the highest in almost eight years, Bloomberg Barclays index data show. That increase has happened at a faster pace than longer-dated bonds, which tech companies bought less frequently.

Article (Bloomberg):
apple-oracle-dump-bonds-and-create-300-billion-hole-in-market

Some of the better ST Bond Funds (listed by 1 yr performance):

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