Over the past several weeks, tech companies have rushed to float bond offerings, hoping to take advantage of the cheap money to buy back shares or pay out — gasp! — dividends.
It’s perfect timing for them since a) they’re getting old (they need to look for other ways of delivering shareholder value) and b) money is really, really cheap!
The latest: eBay.
The company is raising $1.5 billion. The 10-year slice of the offering was sold for just 77 basis points over Treasuries, so we’re talking just 3.31% or so.
Anyway, the whole thing feels very mid-September… like they’re trying to get through the door before it closes.
Just another sign that rates are heading up.
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