Apple Inc (AAPL)

[Investors3]

Apple’s bonds have seen equity-like returns in the past month
Thursday, November 30, 2023 5:28 pm

Investors who purchased Apple Inc. bonds in October are now looking at equity-like returns, as prices have climbed while spreads have tightened as Treasury yields fell.

Ciara Linnane for MarketWatch:

Hopes for one or more rate cuts by the Federal Reserve in 2024 have sparked a rally in Treasurys that has seen the Bloomberg US Aggregate Bond Index, a broad-based fixed-income benchmark, surge 4.91% so far in November as of Wednesday’s close. That puts it on pace for the biggest monthly gain since May 1985, when the monthly return was 5.23%.

The high-grade and highly liquid bonds issued by the iPhone maker have gained up to 15% in price depending on duration, while spreads have tightened up to 22 basis points, since mid-October.

In comparison, Apple’s stock has rallied about 10%.

Given those strong returns, the bonds have seen net selling in the last 10 days, most likely due to profit-taking as the month draws to a close and fund managers seek to lock in some gains.

MacDailyNews Take: Bonds. Yawn… but also YUM!

Related

Wall Street tumbles on tech selloff as bond yields climb
Thursday, February 25, 2021
In "News"

This is the worst year for U.S. stock market investors since 1969
Wednesday, October 19, 2022
In "News"

Jim Cramer: ‘Big Tech’ stocks are better repositories of wealth than bonds
Friday, November 6, 2020
In "Opinion"

https://macdailynews.com/2023/11/30/apples-bonds-have-seen-equity-like-returns-in-the-past-month/