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Technology Stocks : Apple Inc.
AAPL 270.82-1.0%3:59 PM EST

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To: Doren who wrote (212580)8/25/2023 8:11:59 PM
From: NAG11 Recommendation

Recommended By
Doren

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Doren,

A 40% rout in Apple bonds is signaling trouble for bank balance sheets

Maybe actually good for Apple. At 2.55% they're loan beats inflation handily?

I don't think it makes a difference to Apple. The article really doesn't need Apple's name attached to it. They just did that for the clicks. The real story here is that when interest rates go up, bond values go down. If the banks have too many bonds and not enough reserves, they can be in trouble because then they have to sell the bonds at a big loss. If they can hold onto the bonds until maturity, then they get full value on them.
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