The Buzz
Apple prices record $17 billion bond sale
April 30, 2013: 11:24 AM ET
Apple sold $17 billion worth of bonds late Tuesday in the largest sale of corporate bonds ever.
The company offered both fixed and floating rate bonds, with maturities of of 3, 7, 10 and 30 years.
At $17 billion, the offering trumps Roche Holdings' $16.5 billion bond sale in 2009, according to data from Dealogic.
Apple saw strong demand for its bonds, which were rated Aa1 by Moody's and AA+ by Standard & Poor's.
"Whenever a company that's so highly rated comes to market, it's a big deal," said Jody Lurie, a fixed-income analyst at Janney Montgomery Scott.
Apple (AAPL) did not immediately respond to a request for comment. The deal's underwriters, Goldman Sachs (GS) and Deutsche Bank (DB), declined to comment.
Standard & Poor's and Moody's have already given Apple high credit scores, though Fitch has said the company's business model is not consistent with a AAA rating.
Related: Which is worth more, coffee w/Tim Cook or a Lamborghini?
There are only a handful of companies that have AAA ratings, so Apple's AA rating will make it popular with insurance companies and other institutions that need to hold high-quality assets, said Lurie.
"Everyone wants a bite of the Apple," she said, adding that the order book for Apple's offering is rumored to have already reached $40 billion.
Apple said earlier this month that it would tap the bond market as part of a plan to increase its share buyback program to $60 billion and boost its third-quarter dividend.
The move is unusual for Apple, which has not sold debt to the public since 1996.
Apple has amassed a cash hoard worth $144 billion as of the first quarter. However, much of that cash is stashed in overseas accounts, which means Apple would face a hefty tax bill if it were to bring the money home.
Apple joins a growing number of major technology companies that are taking advantage of record low interest rates. Microsoft (MSFT), for example, sold $2 billion worth of bonds last week.
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J.C. Penney scores $1.75 billion loan from Goldman Sachs
Wall Street has been taking a second look at J.C. Penney in the weeks since controversial CEO Ron Johnson stepped down.
J.C. Penney said Monday that it secured a $1.75 billion loan from Goldman Sachs (GS). The announcement confirms reports late last week that that the retailer was nearing a financing deal with Goldman.
Shares of J.C. Penney (JCP) rose more than 4% Monday. The stock gained 9% last week as investors welcomed MORE
Ben Rooney - Apr 29, 2013 12:25 PM ET -
Wall Street sours on gold
Wall Street is turning its back on gold.
Both Goldman Sachs and Deutsche Bank lowered their year-end forecast for the precious metal this week, citing an improving U.S. economy.
Goldman slashed its target to $1,545 per ounce for 2013, down from its previously estimate of $1,610. The bank also lowered its outlook for 2014 to $1,350 an ounce, down from an earlier forecast of $1,490.
Meanwhile, Deutsche Bank reduced its year-end forecast MORE
Hibah Yousuf - Apr 10, 2013 2:06 PM ETPosted in: cyprus, Deutsche Bank, economy, Europe, forecast, gold, Goldman Sachs, inflation, outlook, prices, Wall Street -
Wall Street CEOs: Who's paid the most
It's that time of year again. Most of the nation's big banks have disclosed how much chief executives earned in 2012. While some had their compensation cut, others received hefty raises.
One caveat: Wells Fargo (WFC) CEO John Stumpf, who received $17.6 million in total compensation in 2011, is not on the list. Wells has not yet disclosed Stumpf's 2012 compensation.
Lloyd Blankfein: $21 million
The CEO of Goldman MORE
Ben Rooney - Feb 25, 2013 5:26 AM ETPosted in: Bank of America, blankfein, ceo, citigroup, corbat, dimon, Goldman Sachs, gorman, JPMorgan, Morgan Stanley, moynihan, pay, stumpf, Wall Street -
Bank stocks keep surging
Bank stocks have been on a tear in 2012. Monday was no different, as shares of big banks pushed the broader market higher.
Bank of America (BAC), Citigroup (C), Goldman Sachs (GS) and Morgan Stanley (MS) all climbed more than 2%, while Wells Fargo (WFC) rallied more than 3%. AIG (AIG) shares were up after the company said it plans to sell its stake in AIA Group, a Hong Kong-based life insurance MORE
Hibah Yousuf - Dec 17, 2012 12:59 PM ETPosted in: AIG, Bank of America, bank stocks, banks, financials, fiscal cliff, Goldman Sachs, housing, Morgan Stanley, Wall Street, Wells Fargo -
Blankfein: Hold on, 2013 will be tricky
Goldman Sachs (GS) CEO Lloyd Blankfein thinks Washington will resolve the fiscal cliff before the end of the year, but says 2013 will still be a tough year.
"The next 12 months will be tricky," warned Blankfein, speaking at a conference Wednesday hosted by The New York Times' Dealbook. "Any compromise will involve some dose of austerity -- a deflationary policy."
That's a stark contrast to fellow Wall Street titan Jamie MORE
Hibah Yousuf - Dec 12, 2012 1:18 PM ET -
Goldman Sachs: Stocks can rise 10%-15% in 2013
Stocks have lots of room to run, said Goldman Sachs senior investment strategist Abby Joseph Cohen at the Bloomberg Hedge Fund conference in New York Wednesday morning.
Cohen, a 22 year veteran of Goldman Sachs (GS), estimates that even after the 2012 market rally, stocks could rise another 10% to 15% in 2013. While Congress has given the U.S. population reason to worry about taxes and the fiscal cliff, the overall MORE
Maureen Farrell - Dec 5, 2012 11:28 AM ET -
Goldman Sachs to leave crime scene, exit CSI?
Goldman Sachs (GS) has been part of the crime scene -- CBS' CSI: Crime Scene Investigation franchise, that is -- since 2007. Now, the investment banking behemoth may be ready to flee the scene.
After owning 50% of one of this decade's most popular television franchises, the bank's private equity arm, GS Capital Partners, is looking to make a quick getaway.
GS Capital Partners has been talking to potential buyers for MORE
Maureen Farrell - Nov 29, 2012 12:39 PM ET -
Wall Street banks close, waive fees
Major Wall Street banks shut their doors Monday and said they'd waive certain fees, as Hurricane Sandy barrels toward the East Coast.
Citigroup (C) shuttered all of its branches in Manhattan and said only a handful of branches in New York, Boston, Philadelphia, Connecticut and Delaware would remain operational Monday. The bank's branches in Maryland, Virginia, and the District of Columbia were all open for business Monday.
JPMorgan Chase (JPM) planned to MORE
Maureen Farrell - Oct 29, 2012 12:23 PM ET -
Citigroup unit fined $2 million over Facebook disclosures
Massachusetts regulators on Friday fined a Citigroup unit $2 million for failing to prevent analysts from illegally leaking confidential information about Facebook's initial public offering.
Citigroup (C) was one of several banks that competed to underwrite Facebook's (FB) IPO, along with lead underwriter Morgan Stanley (MS), Goldman Sachs (GS), Bank of America (BAC) and others.
Under U.S. securities law, IPO underwriters are not allowed to publish research on a company until MORE
Ben Rooney - Oct 26, 2012 11:11 AM ETPosted in: analysts, Bank of America, citigroup, FaceBook, Goldman Sachs, IPO, JPMorgan, Morgan Stanley, research
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