Investors want Google's bonds. When the tech giant offered its $1 billion bond to help pay off its debts Thursday, investors wanted five times that amount.
Google's $1 billion in 10-year bonds received $4.75 billion in orders, according to the Wall Street Journal. The Google bonds "were priced to yield 3.377%, or 62.5 basis points over comparable 10-year Treasury bonds," according to a Google spokesman. And that was enough to cause Wall Street to jump on the investment.
The bond sale was the first sale of the search engine's debt in three years. According to the report, the debt will be used for repayment of debts due this year. Google holds some of the highest investment ratings which may have cause some of the excitement.
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"This is a rare issuer with broad name recognition that everyone has room for in the portfolio," Matt Duch, senior portfolio manager at Calvert Investments, told Reuters.
Despite the demand, investment banks Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley won't let the transaction grow more than $1 billion, so those late to the game won't be able to get a piece of Google's AA action.