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Topic: $25 Billion in "the bank" so why is Microsoft going into debt?  (Read 1624 times)

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Offline Nemesis

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$25 Billion in "the bank" so why is Microsoft going into debt?
« on: May 12, 2009, 08:42:28 pm »
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The bonds were issued with maturities of 5, 10 and 30 years. The five-year bonds’ coupon of 2.95% was just 0.95% over comparable Treasurys. “It was the first double-digit spread I’ve seen in a year and a half,” says Bob Persons, manager of the MFS Bond fund (MBDIX), since before the credit crunch widened the risk premiums on all manner of debt. The 10-year bonds’ coupon of 4.2% and the 30-year bonds’ coupon of 5.2% were both 1.05% over comparable Treasurys.
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Offline SkyFlyer

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Re: $25 Billion in "the bank" so why is Microsoft going into debt?
« Reply #1 on: June 06, 2009, 04:38:24 am »
Acquisition? Or perhaps they are foreseeing a financial situation where they will not be able to borrow in the future? It's a lot of liquidity but who knows.
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Offline Dracho

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Re: $25 Billion in "the bank" so why is Microsoft going into debt?
« Reply #2 on: June 08, 2009, 11:48:10 am »
And you never spend your own money when you can spend someone else's money on a risky venture.
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Offline Centurus

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Re: $25 Billion in "the bank" so why is Microsoft going into debt?
« Reply #3 on: June 15, 2009, 04:21:51 pm »
I wonder if these are also non resource monies.  If they are, then if things go belly up, they can write it off as a loss and not have their credit hit.
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