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

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.


CPL Eager Beaver Thu, 08/03/2017 - 13:57 Permalink

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 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.

In reply to by Eager Beaver

CPL ImfallibleK Thu, 08/03/2017 - 14:14 Permalink

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, guiltySusan L Wagner, guiltyDr Ronald D Sugar, guiltyAndrea Jung, guiltyVery 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.

In reply to by ImfallibleK

Too-Big-to-Bail (not verified) Thu, 08/03/2017 - 13:30 Permalink

Paying foreign employees wages to manufacture and assemble iPhones and other real physical productsPaying American employees wages to manipulate and wealth extract in the fincancial industry>>>>Value-added services!! 

lester1 Thu, 08/03/2017 - 13:38 Permalink

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 !!

SDShack Handful of Dust Thu, 08/03/2017 - 15:47 Permalink

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.

In reply to by Handful of Dust

messystateofaffairs lester1 Thu, 08/03/2017 - 14:17 Permalink

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?

In reply to by lester1

messystateofaffairs SDShack Thu, 08/03/2017 - 14:31 Permalink

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

In reply to by SDShack

earleflorida Thu, 08/03/2017 - 13:44 Permalink

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,winningcan't wait for the Tax Holiday?

Uranium Mountain Thu, 08/03/2017 - 13:56 Permalink

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