Finance firms shun bond market as likes of Apple take the lead

Michael Bow
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Tim Cook launched a $17bn bond issue in 2013 and has raised a further $22bn since then
APPLE’S Tim Cook has rolled out four jumbo bond issues in the past two years – and according to new research published yesterday it seems he’s not alone.

Figures from the influential Organisation for Economic Co-operation and Development (OECD) show the number of non-financial companies issuing corporate bonds has jumped 77 per cent since 2008, with a similar rise in the amount of cash raised.

Debt reduction and refinancing are the two main reasons for the surge. Junk bonds also account for a growing share of all corporate bond issuances.

In 2013, non-financial firms raised €1.6 trillion (£1.19 trillion) in total, compared with the pre-crisis era when $730bn was raised on average every year.

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