system
A chat on subreddit /r/wallstreetbets
human
Probably a dumb question. .

If Apple's cash reserves are so high why don't they pay down their debt?
gpt
They actually only started borrowing money again once their profits got very high. The money they can borrow is in the US and unencumbered by any “cash equivalent” agreements about liquidating it. For example, repatriating money back to the US has traditionally incurred up to 35% taxes, although recently its lower but more complicated. In contrast, using that as collateral and issuing debt at 3-4% is money available to do anything they want with, in the US, without moving the actual money or having to sell anything. And interest rates were so low the money was virtually free. I suspect we’ll see less of this as interest rates climb.