September 03, 2026 – NEW YORK -- Egan-Jones Ratings Co. released an analysis showing how a fixed income investor can select a top-tier issuer, complete rigorous due diligence, and still lose roughly half a position's value.
Apple's 2060 notes have lost half their value since issuance
The commentary centers on Apple's 2.55 percent senior notes due 2060, issued in August 2020 at approximately par. The notes traded near 68 percent of par in December 2023 and have since fallen to about half of par, quoted at 50.92 on the Frankfurt Stock Exchange on August 27, 2026.
Rising rates and AI-debt supply, not credit quality, drove the decline
Egan-Jones attributes the drop to the rise in longer-term interest rates, a heavy supply of AI-related corporate debt, and broader investor unease, compounded by a security that was priced to perfection at issuance. The firm states that credit quality is not the source of the loss: Apple may still carry a strong investment grade risk profile, backed by sound management, strong cash flow, and an established product line.
The analysis follows a hypothetical portfolio manager who reviews those characteristics, finds the yield comparable to other AA+ rated instruments, and commits to a multi-year position. Egan-Jones notes that nothing in that process was careless; the risks that produced the loss sat outside the credit assessment entirely.
A comparable BDC-style portfolio would have offset losses through yield
Egan-Jones observes that a portfolio built instead from assets resembling a typical business development company, with roughly 2.5 percent of loans marked as non-accruing and an average interest rate near 8 percent, would have earned enough interest on performing holdings to more than offset credit losses. The firm is explicit that this is not an argument that investment grade credit is riskier than speculative grade credit, but that the totality of risks deserves weight alongside issuer quality.
Diversification alone offered limited protection in this scenario
Egan-Jones concludes that a clear understanding of all risks attaching to an investment is usually the best path forward, noting that some of the most damaging risks are not readily apparent at the point of purchase.