Cash-Rich Tech Companies Can’t Help Tapping U.S. Debt Markets
- Google sold $2 billion of 10-year notes Tuesday to repay debt
- In last week, Microsoft and Apple have also sold bonds
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Technology companies from Apple Inc. to Microsoft Corp. have sold more than $100 billion of debt this year even as they sat on more than half a trillion dollars of cash. They did it for two reasons: they wanted to avoid paying taxes, and because they could.
Bond buyers fleeing negative yields on government debt in Europe and Japan are eager to snap up technology company bonds. The securities are seen as safe while offering higher income than U.S. Treasuries.