The big players from the American bond market

By | September 13, 2017

Apple, Alphabet, and Microsoft are just three of the most appreciated American companies that have become a force in the global bond market, pumping billions of dollars into the national budget and corporate titles.

No less than 30 different American companies share investments worth $00 billion dollars in fixed income tools, suggests an analysis created by Financial Times.

Their holdings transform these names into a real force when it comes to debt markets, in comparison to top asset managers like AllianceBernstein, Invesco or Franklin Templeton.

“They are real asset managers,” revealed Ramaswamy Variankaval from JPMorgan about these companies.

Against the reluctance of US multinationals to repatriate their earnings abroad, the level of US-owned liquidity has risen to more than $2 billion, with 50% more than in the last decade and twice the levels reached at the beginning of the century, according to the data released by the US Central Bank.

In total, those 30 companies, including Ford, Coca-Cola, and Boeing, hold more than $1.200 billion dollars of liquidity, according to FT analysis.

Apple will use these funds to finance the capital program for their shareholders as well as for general expenses.

The US company has a $96.6 billion exposure to senior unsecured bonds and $12 billion in unsecured short-term bonds, according to July 1 data.

Apple has so far issued bonds in dollars, pounds, euros, and yen. Almost two months ago, Tesla sold $1.8 billion in bonds for eight years. On Tuesday, Amazon.com issued $ 16 billion in bonds to finance the acquisition of the Whole Foods Market for $ 13.7 billion.

 

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