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>Lots of companies are actually taking loans they don't need just to lock in rates, and then pretty much just sit on the cash. If you're MSFT or AAPL and can i
by hkmurakami 14y ago
>Lots of companies are actually taking loans they don't need just to lock in rates, and then pretty much just sit on the cash.
If you're MSFT or AAPL and can issue bonds at 1% and buy other comapnies' bonds at 3%, that's a pretty easy way to lock in a spread.
Interest rates are virtually guaranteed to rise in the next 3-5 years. Bernanke's previous quote is for interest rates to remain low until 2015, and Pimco has proclaimed that "the 30 year bull run in bonds is over".