Record Bond Deal Boosts Apple to Month High

Wyatt Investment Research

Apple’s (AAPL) newfound generosity is helping the slumping stock finally turn a corner.

Apple shares rose another 3% today to close at their highest level in more than a month. A $17 billion bond sale – a new record for a U.S. investment-grade corporate offering – was the catalyst behind Apple’s latest move. The offering generated more than $50 billion in new orders.

The offering comes on the heels of last week’s earnings report, in which the company announced its intention to return $100 billion of its massive cash stockpile to shareholders in the form of share buybacks and dividend increases. This bond sale will help offset some of the taxes Apple will incur once it unlocks some of its overseas cash for the purpose of using it to return more money to investors.

The record total plus the cheap price tag on Treasury bonds, which are tied to the price of corporate bonds, should help Apple unlock plenty of that overseas cash.

Today’s bond-aided move extends an Apple rally that dates back to April 19. That was the day the stock reached a 16-month low of $390 a share. It has since risen 14% in seven trading sessions.



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