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Apple's first bond issue in two years is the main story of the busy primary

Apple plans to offer four tranches of bonds on Monday. It will be its first bond offering in two years. Proceeds from the sale will be used for repurchasing stock and paying off outstanding debt, as well as other purposes.

CreditSights analysts believe that the offering will raise between $5 and $6 billion. Apple's debt is $8 billion due in May to November.

A total of approximately $35 billion in new debt is expected to be issued by eight other investment grade primary market issuers. Comcast, DTE Electric Co. and General Motors are among the issuers.

Credit spreads or the premium that companies pay for Treasuries have rebounded since U.S. president Donald Trump announced the tariffs.

The uncertainty surrounding Trump's policies threw many issuers off their plans. They rush to the market before the Federal Reserve meeting on Wednesday in order to avoid the volatility that usually follows comments made by the Fed chairman after monthly policymaking meetings.

Analysts said that demand is expected to be strong, as investors seek safety by buying higher-rated bonds.

Dan Krieter of BMO Capital Markets, director of fixed-income strategy, said that the issuance rush followed six weeks of consecutive outflows of investment-grade funds. This is the longest streak of outflows since November 2022.

Natalie Trevithick is the head of investment-grade credit strategy for Los Angeles-based asset management firm Payden & Rygel.

Latest data show that the average spread on investment-grade bonds was 106 basis point Friday. This is three basis points less than the previous day.

"Today's issuance is made up of a large number of names of excellent quality, and a great deal of it is simply a regularly scheduled issuance." Trevithick said that there were probably a few deals that were pushed back to April.

Payden & Rygel anticipates 12 billion to 13 billion dollars of supply for Monday with a demand of approximately $58 billion from investors, she said.

(source: Reuters)