What Will Amazon Do with its Latest Bond Offering?

By

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.




Edited by Braden Becker
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Web Editor

SHARE THIS ARTICLE
Related Articles

Tech Innovation in iGaming

By: Contributing Writer    11/29/2023

iGaming is one of the fastest growing industries on the internet. For those who may not be aware, iGaming refers to online casinos, online slots, poke…

Read More

8 Underrated Features of Your Mobile Device You Probably Didn't Know About

By: Contributing Writer    11/21/2023

It is easy to get lost in all the new phone releases when multiple happen yearly. Consequently, most new functions go unnoticed because people do not …

Read More

Navigating the Launch: A Step-by-Step Guide to Bringing Your Product to Market

By: Contributing Writer    11/15/2023

Embarking on the journey to bring a new product into the marketplace is an exhilarating adventure that blends the thrill of innovation with the meticu…

Read More

Running MySQL on AWS: Step by Step

By: Contributing Writer    11/15/2023

MySQL on AWS is the deployment of the MySQL database system on Amazon Web Services (AWS) cloud platform. MySQL is one of the most popular open-source …

Read More

4 Easy Responsive Image Techniques

By: Contributing Writer    11/15/2023

Responsive images are a fundamental component in responsive web design. They adapt to the size of the user's screen, delivering the best user experien…

Read More