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Even with the 50 bps rate cut, everyone is still very tight with their money. It makes sense that Apple would back out in this high rate environment.
by mise_en_place 2y ago
Even with the 50 bps rate cut, everyone is still very tight with their money. It makes sense that Apple would back out in this high rate environment.
- blitzar 2y agoApple has ~66 billion in cash sitting around. A 50bps rate cut costs them houndreds of millions a year.
- cj 2y agoApple also has $100b of debt, so maybe it's a wash?
- blitzar 2y agoThe debt was issued when rates were very low with fixed coupons as low as 0.375%, only the more recently issued bonds are in the 3-4% range. Nevertheless they are paying fixed rates on their debt and (are likely) recieving floating rates on their cash.