Big Technology Loses Its Appetite for Bonds

A follow-up article by Scaggs noted that macro strategists at Credit Suisse estimate multinationals will liquidate and deploy $800 billion of their offshore investments by 2020 ($400 billion each in 2018 and 2019).

This process may have started.

We pored through publicly available 10-Qs for the top six technology firms that have foreign units – Apple, Microsoft, Google, Facebook, Cisco and Oracle(labeled “Tech 6” from here on) – to see how their investment activities have changed, if at all, in the first quarter of 2018 (Q1 2018).  We use these six companies as a proxy since their cash hoard constitutes 70-80% of cash held overseas by US multinationals.

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