Wednesday, September 22, 2010

Microsoft... Borrowing on the CHEAP

Bloomberg details:

Microsoft Corp., one of four non- financial U.S. companies with AAA ratings, sold $4.75 billion of bonds, including three- and five-year maturities at the lowest coupons on record.

The company’s $1 billion of 0.875 percent notes due in 2013 and $1.75 billion of 1.625 percent debt maturing in 2015 have the lowest interest rates of more than 3,500 securities in the Barclays Capital U.S. Corporate Index of investment-grade company debt.

Microsoft, based in Redmond, Washington, also sold $1 billion each of 10- and 30-year bonds, according to data compiled by Bloomberg. The 4.5 percent, 30-year debt tied for the lowest coupon with an issue last month from Johnson & Johnson.


  1. What about foreign currency exchanges? If the dollar is expected to appreciate, it's not that rotten a deal I think.

  2. then why not just buy treasuries?

  3. If you don't think Microsoft isn't going bust anytime soon, then the MSFT bonds offer a better yield?

  4. I would like to exchange links with your site
    Is this possible?