Amazon made history in the stock market on Monday, closer to the US government-sponsored interest rate than any other US company.
The ecommerce group raised $ 18.5bn in loans for eight different categories, ranging from two to 40 years, according to people familiar with the project. Of its $ 1bn two-year loan, it paid only 0.1% compared to US Treasury debt yields, a record according to Refinitiv’s actions.
The above-mentioned yields Large pay companies, or spreads, indicate that investors’ perceptions are at risk of lending to the company as opposed to the assertion that there is no risk to the US government.
Amazon, one of the winners of the epidemic, last week recorded the second consecutive episode of $ 100bn-plus revenue and said his total income had tripled in the first quarter since the same period last year, to $ 8.1bn.
The company had $ 33.8bn in cash and cash equivalents at the end of March, according to a recent filter, the highest earnings at the time.
“They don’t need money but money is cheap,” said Monica Erickson, head of the stock exchange at DoubleLine Capital in Los Angeles.
Spread has declined sharply since the Federal Reserve intervened to save it Corporate alliances The market for the dangerous trade-off due to the epidemic, and now lower levels compared to those that occurred before the coronavirus.
This means that it is a very good time for companies to lend money to investors, even if they have no reason to hurry.
Amazon also established a record of the lowest spread in the 20-year corporate partnership, 0.7 point points, through alphabetical documents borrowed last year, according to Refinitiv data. It was also similar to the 0.2 per cent spread for the first time that Apple offered for a three-year contract in 2013 and was just a shame at the 0.47 per cent it paid for Procter & Gamble on a 10-year lease last year.
Investors at an Amazon retailer had just left $ 50bn, according to people, indicating the number of people who want to repay a loan to a US business, although high interest rates have undermined the value of a fixed bond.
US-based corporations still offer higher interest rates than any other country.
The two-year deal in the Amazon also had a solid track record that has been a source of excitement for investors. The company said the money would be used to raise funds in five areas, including renewable energy, clean transportation and affordable housing.
It also listed a number of activities that can be applied to all loans including repurchasing, purchasing and spending.
In a recent financial call, Brian Olsavsky, chief financial officer, said the company would be “selling more money” in the “middle mile” delivery, which includes aviation and road access, in order to expand its network of “end-to-end” vans and home operators. .
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