Apple, Microsoft and Alphabet Grapple With Bond Investment Losses

The bond market’s historic sell-off this year, in response to rising interest rates, has been disastrous for retirees dependent on bonds for income. It’s been almost as bad for Apple, Microsoft and Alphabet, wiping out billions of dollars from the mountains of cash they’re sitting on.

Worst hit is Apple, which reported that bond losses shrank the value of its cash and investments 6% or $11.3 billion in the nine months to June 25, the equivalent of 12% of its operating profits for the same period. Microsoft and Alphabet were down around 3% at the end of June. Amazon and Meta Platforms, which have smaller cash reserves, have also been hurt. All five companies report updated numbers for the September quarter this week, and are likely to show even bigger investment losses.