US tech firms have all the cash they need
With money taken home to the US, after new tax legislation made it cheaper in 2018, companies like Apple and Microsoft don't go for February bond-selling rounds like they used to.
News site Treasury & Risk publishes a Bloomberg article reflecting on this winter’s relative non-activity by large technology corporates, when it comes to borrowing.
February used to be hot
In the previous five years, February was the month with the most or second-most sales of bonds by the tech sector in the US market.
In 2018 nearly half of the bond sales took place this month. But this year … nope, despite low interest rates. ”Big tech earnings came and went without so much as a hint of plans for corporate bond sales this year, setting up a February drought that hasn’t been seen in years,” says the article.
Expected to stay
”The technology sector has mostly passed on the primary market since new tax legislation was rolled out in the beginning of 2018, funding maturities with cash on hand, a dynamic we expect to persist,” says Bloomberg Intelligence analyst Robert Schiffman in the article.