Big Buyers Of Corporate Bonds: Other Corporations.

The article states that cash-rich corporations such as Apple Inc. Oracle Corp., and Johnson & Johnson were purchasing corporate bonds sold by firms including Verizon Communications Inc. and Gilead Sciences Inc. as part of a trend that saw over half of corporate cash held by U.S. firms being invested in investment-grade corporate bonds in August 2015. According to the article, corporations were betting that highly-rated corporate bonds would pay high rates, and banking rules initiated by the U.S. central bank the Federal Reserve made corporate deposits more expensive.