Amazon Said to Seek $16B Bond Sale

The video discusses Amazon's decision to issue debt, highlighting the favorable market conditions with low interest rates. It compares Amazon's actions to other tech giants like Microsoft and Apple, who are also active in the bond market. Amazon's $16 billion debt offering is well-received, tripling its existing debt and attracting investors who prefer fixed income over equity risk. The video also covers the market's positive reaction and how Amazon's rates compare to similar companies.

Why is Amazon choosing to issue debt at this time?

• To follow a trend set by smaller companies

• To preserve cash amidst favorable market conditions

• To take advantage of high interest rates

• To reduce their existing debt

Which of the following companies is NOT mentioned as a major issuer in the bond market?

• Apple

• Google

• AT&T

• Microsoft

How much debt did Amazon issue, making it the fourth largest for the year?

• $64 billion

• $8 billion

• $16 billion

• $32 billion

What is one reason investors found Amazon's debt issuance attractive?

• Amazon rarely issues investment-grade debt

• Amazon's debt issuance was poorly timed

• Amazon's stock price is stable

• Amazon's debt is riskier than its equity

How did the market conditions affect the pricing of Amazon's debt issuance?

• The price remained unchanged

• The price was lower than initially discussed

• The price was higher than expected

• The price was not influenced by market conditions