If you like your financial news shaken, not stirred, I have three words for you:
Bond. Amazon bonds.
In 1997, Pierce Brosnan was James Bond, and Amazon was considered a junk-rated bond issuer.
How things have changed.
Nowadays, Daniel Craig is James Bond and Amazon is a powerhouse in the industry, and planning to sell three-, five- and 10-year bonds in a deal that is expected to soar into the $2.5 billion range.
Image via Shutterstock
The proceeds will be for general corporate purposes, such as the purchase of Amazon’s corporate headquarters, according to Moody’s.
"Demand should be strong because it's a new name for the marketplace," Sean Simko, head of global fixed-income management at SEI Investments, told foxbusiness.com. Experts expect the bonds to yield .5, .75 and 1.05 percent over the three-, five- and 10-year Treasury rates.
But not everyone is excited about the offering. Andrew Hofer, portfolio manager at Brown Brothers Harriman in New York, is not impressed. "This Cyber Monday promotion is still too expensive, as much as we admire the company," he said.
Moody’s cited online retails sales as a strength for the company, helping boost its credit rating, but other factors are working against it, and Moody’s gave Amazon a AA-minus rating.
Aside from the corporate headquarters, the mind boggles at the thoughts of what Amazon might do with billions of dollars. Perhaps it is planning for the zombie apocalypse, or looking to ship extra Hostess goodies to Colorado and Washington State. Or maybe the company wants to promote books by independent authors. Only time will tell.
TechZone360 Web Editor
It is now possible to perform 3D scanning from a smartphone, without additional hardware or an Internet connection, thanks to a new Microsoft Research…
Word is that Amazon is scaling way back on its consumer devices efforts, having let go of dozens of Lab126 engineers who worked on its Fire phone, acc…
The hype around 4K Ultra HD video is growing and we're seeing it gain traction in real ways. From the NFL Network and CBS using 4K cameras to capture …
In December 2015, when "Star Wars: The Force Awakens" hits movie theatres across the U.S., a very different type of force will 'awaken' the mobile wal…
If you take a few minutes to think about what hackers go after, you'll realize that it is anything that has an Internet connection. Thanks to the Inte…