The deal “is going to be very well received by the market” because “we’ve seen quite a bit of demand for high-quality fixed income,” Rob Waldner, Invesco’s chief fixed income strategist and head of macroeconomic research, said on Bloomberg TV.
Traders surveyed by Bloomberg expect US investment-grade corporate bond sales of between $30 billion and $35 billion this week as corporate debt markets show signs of compliance. The sale will be Apple’s first since it sold $5.5 billion to fund buybacks and dividends in August.
Up to 15 borrowers could sell on Monday in a bid to secure financing ahead of the release of consumer price index and producer price index data, scheduled for Wednesday and Thursday, respectively.
Proceeds from the Apple sale will be used for general corporate fines. That could include share buybacks, dividend payments, working capital, capital spending, acquisitions and debt repayment, the person noted.