Cisco Systems, Inc.(NASDAQ:CSCO) Offers New Bonds


Dallas, Texas 02/26/2014 (FINANCIALSTRENDS) – Cisco Systems, Inc.(NASDAQ:CSCO) has since launched one of the largest bond offering, since September last. The company is expected to raise over $8 billion in seven parts.

Cisco Systems, Inc.(NASDAQ:CSCO) saw one of the heaviest trading activities, with the fixed rate non-call senior debt for fixed bonds in the US markets on Feb 24.

Analysts now note that the overall trend in the market for technology stocks included Google Inc reporting 14th heaviest trading. Besides, Apple Inc too has reported trading at the 15 highest.

Leading analysts pick on Cisco bonds

Cisco Systems, Inc.(NASDAQ:CSCO) bonds, according to analysts is a punch, which is way above its weight, in comparison to the peers as well as the bonds which are traded for the day. It was noted that for the day, the spread for Google Inc as well as Apple Inc in comparison was higher for Cisco Systems. This despite the default probabilities favouring the other two firms for over a decade now. The analyst also explains that the legacy rating in terms of credit has been five notches higher over the previous.

It is therefore reported that the news though good for the shareholder will not hold good for bond holders. The bond which Cisco Systems, Inc.(NASDAQ:CSCO) currently offers has awarded a reward to risk ration which is 275th out of the overall 333 large quantity of bond trades which were executed on the first day of the last week of February 2014. The expectation is that the investors can now expect twice the spread on per basis point on default risk. The comparison is with respect to Apple Inc.

Analysts interpret Cisco Systems, Inc.(NASDAQ:CSCO) bonds spread to be more beneficial in comparison to other technology bonds.  The old school of credit ratings have proved to be working for Cisco over other modern systems.