Apple Now Owns $51.5 Billion In Treasurys, More Than Mexico, Turkey Or Norway

Tyler Durden's picture

Every quarter, Apple manages to impress with its gargantuan cash hoard, which in Q2 rose to $262 billion (which however is $153 billion net of debt), a new all time high as shown in the chart below.

While it is widely known that of this $262 billion, the vast majority, or $246 billion is held offshore, what is less appreciated is that Apple's actual cash is just $18.6 billion. The rest is held in various securities, both short- and long-term, something we first reported back in September when we introduced readers to Braeburn Capital, the firm that actually manages Apple's quarter trillion in asset holdings.

In the five years that have passed since then, Apple's AUM have grown. Substantially.

As the company reported in its latest 10Q, as of June 30, AAPL now owns enough assets to not only put even the world's largest hedge fund, Bridgewater with less than $200Bn in assets to shame, but some of the world's largest holders of Treasurys. Of its total $243 billion in Short and Long-Term securities, Apple owned a whopping $51.5 billion in Treasurys, split between $20.1 billion in T-Bills and $31.3 billion in Treasury Bonds.

While Apple's TSY holdings have fluctuated over the years, with a notable decline around September 2014, they have since grown to an all time high of $51.5BN, up from $50.9BN last quarter and $40.5BN as of its last fiscal year end:

Putting this number in context, if Apple was a sovereign nation, it would be the 24th largest holder of US Treasurys in the world, more than Turkey with $49.5 billion, Norway with $48.3 billion and Sweden with $40.8 billion and Mexico with $38.9 billion.

Still, nothing compares to Apple's major asset class, total Corporate Securities, which in Q2 hit a new all time high just above $150 billion, up from $54.6 billion 5 years ago.

As for the rest of Apple's holdings, here is the full breakdown:

  • Corporate Securities: $150.6 billion
  • Treasurys: $51.5 billion
  • Mortgage and asset backed: $20.6 billion
  • Non-US Govt securities: $7.1 billion
  • Certificates of deposit: $5.8 billion
  • Agency: $3.1 billion
  • Commercial paper: $2.5 billion
  • Municipal debt: $939 million

For a grand total of  $261.5 billion, including $18.6 billion in cash. If the whole iPhone thing ever fail,s Apple can just give active asset management a try. That said, we wonder just how much Apple pays in broker fees each year and how much it gets back in the form of favorable sellside research.

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Bill of Rights's picture

The initial forecast for Q3 from the Atlanta Fed is +4.0% in the popular GDPNow model.

 

GO TRUMP!

Looney's picture

 

Apple can just give active asset management a try

Apple can hire the E-Trade Baby.   ;-)

Looney

Eager Beaver's picture

Did we just find the buyer of last resort-to be?

Buckaroo Banzai's picture

So the best use of Apple's profits is to invest in Treasuries that were created in order to back paper money that was in turn conjured out of thin air?

I mean, this is supposedly one of the most innovative and most productive Corporations in the world, and this is the best investment decision they can make?

Fucking clown world.

jcaz's picture

Talk about dead money..... Apple "innovation", indeed-  stupid to be loaded up in that much Treasury paper.

Mr 9x19's picture

they cannot put their money on table as it is all digits on fake markets.

apple is shit.

 

i can build faster computers for 1/3 of the price.

 

innovation my ass, since job's death, apple is in freewheel mode.

 

 

rccalhoun's picture

APPL realizes they are part of bubble and want some return of capital (prob for the execs) when the bubble blows

wonder how much un-documented gold they have stashed?

Handful of Dust's picture

my grandma gave me a savings bond one time

CPL's picture

They have a high credit rating, and it's cheaper to borrow money than make it with 0% interest.  Sort of like printing your own money just like the banks do.  They use the treasuries as collateral to borrow a lot of money to buy back their stock to buy more treasuries with more loans...etc...apple is called a credit front and it stopped being a technology company when it's principal owner and CEO died in 2011 of a very terminal bout of cancer.  They were also always first to put forward commercial laws for literally thousands of different agenda's (SOPA, PIPA, ACTA, Patriot Act 1, Patriot Act 2).  As a company it's not as benign or friendly as it's presented, they are sort of quasi-scumbags.  Personally I think they are front for someone else since no one actually buys their substandard crap.  Whoever they are they sell Apple the treasuries and sign the loans on the collateral.  Only one group does that, Federal Reserve bank.  Come recite the mantra with me.

Die Janet Yellen, die.

Die Lael Brainard, die.

Die Jamie Diamond, die.

Die Gary Cohen, die.

Die Alan Greenspan, die.

Die Mario Draghi, die.

ImfallibleK's picture

"since no one actually buys their substandard crap"
That explains why I see their substandard crap everywhere. 

CPL's picture

They are less than 2% of a marketspace, they are out sold in nearly every category and their products are 800-1200% more expensive than their competitors.  The links to that company and where you want to follow the money.  The names of the guilty are as follows:

James A Bell, guilty

Susan L Wagner, guilty

Dr Ronald D Sugar, guilty

Andrea Jung, guilty

Very high level connections to other organizations known to be complicit in the scam and murder charges that are now being brought to trial.  The bailiff will remove the names on the list for processing soon enough.

lester1's picture

If that GDP was accurate, why do we still have 43 million Americans on food stamps since 2009?

Shouldn't that number be going down as the economy "expands"?

Too-Big-to-Bail's picture

Paying foreign employees wages to manufacture and assemble iPhones and other real physical products

Paying American employees wages to manipulate and wealth extract in the fincancial industry

>>>>Value-added services!!

 

Handful of Dust's picture

I'm sure AAPL execs feel the peasants in south china should be grateful to have a job working 16 hours a day for $5/day.

 

Stormtrooper's picture

Good luck ever cashing in those bonds for anything of value Apple.

1stepcloser's picture

Value is holding them....Oh you're not going to rule against our patent....we'll just dump'em.. But since the Fed will buy them its a wash...

StackShinyStuff's picture

They are short term securities, not long term bonds.  Not much risk in them.

GlassHouse101's picture

I'm sure Apple has them out of the goodness of their hearts, not expecting any 'favors' . .no, never.

StackShinyStuff's picture

It's the safest thing to hold right now.  God you are dumb.  

Edit:  Wrong choice of words.  I meant "What is ya ig'n'nt??"

poor fella's picture

Here, hold my dick ---

   and I'll have a free hand to hold yours.

lester1's picture

Couldn't we consider this a back door quantitative easing?

 

1.The FED prints electronic money in hands it to Wall Street banks,

2.Wall Street then invest in Apple and buys their stock,

3.Apple has cash and buys US Treasuries.

 

Rinse and repeat QE !!

Pernicious Gold Phallusy's picture

I love it when "Apple" and "back door" get used in the same conversation.

SDShack's picture

Perfect example of Corporatocracy. 

Handful of Dust's picture

variation on the petrodollar

SDShack's picture

Petrodollar is an interesting concept that goes beyond Corporatocracy. To me, the Petrodollar not only encompasses Corporatocracy, but also describes how the nexus of corporate/govt is expanded into Empire Building and the need for a Security State. Empire building is done to violently take assets from other nation-states/empires via the Security State. After expanding the empire, the conquerer placates the vanquished by extending some medium of exchange (money) for the plundered tribute. By taking the medium of exchange, the conqured masses agree to become servants to the conquerer, thus a level of control is established.

The problem is that once empire building starts, it becomes unstoppable. Greed, Power and Control beget more empire building, which begets more money to control via Security State, Bribes, Welfare, etc. Eventually this cycle corrupts all empires. They become over extended and the scarcity of money leads to collapse, either by their masses starving and revolting, or through foreign take over because the Security State has deteriorted.

This is why Empire Money (Petrodollar) is defended as vigorously as any physical territory. Because without it, physical territory disappears. It is also why bankers have designed fiat and a world wide debt system to use it. The elites are trying to design the world as a perpetual ponzi to stave off the empire collapse. But because they are sociopaths, they cannot see how their system must eventually cause them to feed on each other and ultimately fail.

messystateofaffairs's picture

Why you've discovered another good Jewish idea. The other day I also found one, you go to the hospital and they give you a $10,000 band aid. The insurance pays it. That way 100 people pay for your band aid instead of you alone who couldn't afford it anyway. The banksters interlocking network of companies own the insurance and medical complex (and everything else). Isn't Jewish medicine in America wonderful?

1stepcloser's picture

Aint fascism grand!

SDShack's picture

Actually reverse Fascism. With Fascism, the State takes over the Means of Production. In this case, the Means of Production control the State. That is a Corporatocracy. Put together a few more examples like this and you have an Oligarchy.

SDShack's picture

Yep, Plutocracy could be another word for it. But IMO, the real goal of whatever the system is called, is Neo-Feudalism, or what I like to call the New Feudal World Order.

messystateofaffairs's picture

Definition of economic fascism isn't hard and fast, I like this one

An inherent aspect of fascist economies was economic dirigisme,[4] meaning an economy where the government exerts strong directive influence over investment while often subsidizing favorable companies, as opposed to having a merely regulatory role. In general, apart from the nationalizations of many industries, fascist economies were based on private individuals being allowed property and private initiative, but these were contingent upon service to the state.

We are already fascist economically and with the progress of removing property rights will become a feudal/fascist global republic with an democratic illusion of who runs the feudal/fascist system, kind if like how America works now.

SDShack's picture

I agree that Neo-Feudalism is definitely the ultimate goal.

A. Boaty's picture

Reminds me of the old GM, a finance company that also made cars.

BitchesBetterRecognize's picture

Is it me, or Apple has become a USTreasuries clear house on behalf of the FED?  

earleflorida's picture

and 50% of it is owed to the USSA in back taxes held off shore---

but that OK, cause now the US Gov'ts. got $52 Bln to lend out for moar i-phone sales,

winning

can't wait for the Tax Holiday?

oldguyonBMXbike's picture

Apple is just laundering money for the Feds.

Manipulism's picture

So they own the fucking USA

Manipulism's picture

Now we can call them iTreauries.

bluskyes's picture

Apple ran out of good ideas years ago.

They should be funding secret, and independent skunkworks

83_vf_1100_c's picture

 Apparently you missed the news release that the new iPhone camera has a 'pet mode'. So yeah, innovation is pretty much dead. What they need is a processor that mines bitcoins when you are not busy posting pics of your dinner. /s

bluskyes's picture

I'm pretty sure the NSA was mining bitcoin on my old samsung galaxy slide. The battery life got terrible. The phone began running hot, and one day the battery bulged the case out.

Uranium Mountain's picture

So when the bond market crash happens, they stand to own billions of USD paper promises in discount bond's.  Who cares, it's Sweden's money anyway right since Sweden owns billions in Apple shares.  Ha ha

 

Muad'Grumps's picture

Why doesn't Apple buy a piece of Pan American Silver if not the whole thing?

messystateofaffairs's picture

Better to stock up on toilet paper than Treasuries. But what do I know I'm not a PhD economist.

Muad'Grumps's picture

PAAS market cap only 2.57B. AAPL could but the entire silver sector.

shizzledizzle's picture

Apple has some smart folks... How long you think it will take for them realize that they are worthless?

Laughing.Man's picture

I doubt they bought them willingly.

Pernicious Gold Phallusy's picture

So Apple's fortunes are now closely aligned with the Bank of China?

U4 eee aaa's picture

You would think the best investment would be to lower the cost of their product so more people could afford them