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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: engineer who wrote (92327)	6/9/2010 10:28:10 PM
From: TuxedoMask	2 Recommendations Read Replies (1) \| Respond to of 196644

Steve Job's interview in the D8 conference. How many committee are in Apple? Zero.. Apple is run like a start up.

To: engineer who wrote (92327)	6/9/2010 10:38:34 PM
From: Jon Koplik	1 Recommendation Respond to of 196644

RE : "Microsoft ... could pay their short term debt out of this bond [offering proceeds] and ..." Just a few points (from someone who spends way too much time thinking about this sort of thing) : If a corporation switches to meeting their funding needs via a locked-in (long-term) borrowing (a bond offering), replacing a floating rate funding scheme (continuously rolled over commercial paper, or -- just plain old borrowing from a bank), they will reduce their interest cost ONLY if the yield curve is inverted (short-term interest rates higher than long-term interest rates.) (The yield curve has only been inverted very briefly in the last 5 or 10 years, and not really in the "classical" way.) ("Classical" meaning : with overnight money hugely costly, as happened around 1980.) (In the last 5 or 10 years, people have "gotten themselves in a lather" when the curve was inverted from 2-years out to 10-years. But Microsoft would not have been regularly borrowing with 2-year maturity.) -------------------- Things accomplished by switching from short-term funding to long-term funding include : certainty on cost (since you've got it locked in. No rollover risk.) and certainty on access to funding (in the case of a company whose credit rating deteriorates AFTER they have obtained the long-term funding.) Jon.