Amid all the carnage, here's another group of folks who have been getting smoked: Apple bondholders.
Remember, back in early May, Apple raised $17 billion in a bond offering, when borrowing costs were ultra-low.
At the time, the yield on the US 10-year was just 1.7%, as investors were going crazy buying anything fixed income. And because Apple is seen as ultra-safe, the company itself was able to borrow at just 2.4%.
But since then we've seen a total market reversal. Yield on the US 10-year has surged to 2.41%, amid a huge rout in fixed income.
And those who bought Apple bonds are getting slammed.
Here's a look at the price of Apple 30-year bonds. Total carnage.
And Apple — having borrowed all that money so cheaply, at exactly the right time — is laughing all the way to the bank.
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