Apple Inc. could have hardly picked a better time to borrow an unprecedented $17 billion in its first bond sale since 1996.
The world’s most valuable technology company is pocketing an initial $40 million in annual interest savings compared with current yields on the six bonds it sold, according to data compiled by Bloomberg. The yield on 10-year Treasury bonds, a benchmark for the entire fixed-income market, rose to 2.13 percent by the end of last week from 1.67 percent on April 30, the day of the offering, Bloomberg Bond Trader data show.
Apple’s new debt, its only outstanding bonds, lost $504 million of market value through the end of last week, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt has been the fifth-most actively traded on Knight BondPoint since it was issued.