Amazon Borrows $10 Billion at Record Low Interest Rates
Amazon (NASDAQ: AMZN) is facing significant disruptions in its business as a result of the COVID-19 pandemic. Sales are surging as people shift more shopping online to reduce trips they need to make to the store. Meanwhile, Amazon is making adjustments to fulfill the increase in orders while keeping frontline workers safe.
The added measures are costing the company billions. In its most recent quarterly report, the company said that it would be spending $4 billion on COVID related expenses. That, along with record-low interest rates resulting from Federal Reserve intervention in markets, might be a few reasons the company went into the bond market to borrow $10 billion. Let's take a closer look at the bonds it issued.
Amazon borrows $10 billion to reinforce its balance sheet. Image Source: Getty Images.
Source Fool.com
