sunwarriors
Active Member
The bonds they issue are trading way below par, they would be buying them
At a bargain. It’s just a matter of how risk averse one may be, I
Despise debt, hence carry no debt.
Seems Elon too dislikes debt.
Of course it's trading way below par because the interest/coupon they are paying on the coupon is way lower than current interest rates. Nobody will pay par or full value on a bond when someone can buy a Gov. treasury for higher interest rates. It's cheaper than par, but the YTM is higher than the coupon so it needs to be even cheaper as interest rates have changed when these were issued for Apple to really want to buy them back.
You mention you despise debt, but I don't think you have a clear understanding of how bonds/debt works to blanket assume closing these out is a smart thing.
Debt isn't inherently a bad thing if it's managed/understood well. Like if I can borrow long term (mortgage) for 30 years at 2%, but can get 5% guaranteed tax free for 30 years, wouldn't one load up and earn free $$?
It appears Tesla has debt too if you assume Elon dislikes debt:
Is Tesla $10.6 Billion Debt A Cause For Concern? | Fundamental Data And Statistics For Stocks
Explore Tesla's total debt, cash, and net debt. Read also Tesla's debt due, total liquidity, debt ratio, and credit rating.
stockdividendscreener.com