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  "documentTitle": "Apple Inc. (AAPL)",
  "authorId": "04_Greenlight_Capital",
  "authorName": "David Einhorn",
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  "presentationDate": "2013-02-21 00:00:00",
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      "text": "As a result of the Fed's Zero Interest Rate Policy, there is a widespread need for safe income.",
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      "text": "Fed policy of zero interest rates creates enormous demand for safe income. There are no other large preferred issuers of equal quality. Microsoft and IBM long-dated debt yields less than 4%. iPref dividends are taxed at a lower rate than interest income.",
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      "text": "yield: 4%",
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      "text": "The iPref dividends will be taxed at the lower dividend rate. Taxable investors, on an after-tax basis, would earn 1.3% more than government bonds and about 0.9% more than high quality corporate bonds.",
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      "text": "As a result of the Fed's Zero Interest Rate Policy, there is a widespread need for safe income. There are very few high-quality corporate issuers that offer sizable amounts of safe, income-paying instruments, and there are none that approach Apple's quality.",
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      "text": "When Apple initially distributes the iPrefs, they might trade a bit cheaply at first... But over time, the size might turn into a benefit because the iPrefs should be highly liquid and could even garner a liquidity premium and serve as a benchmark.",
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      "text": "As for technology borrowers, Microsoft 30-year AAA rated paper yields 3.9%. IBM 30-year AA- rated paper yields the same as Microsoft. We think Apple should at least be comparable to those.",
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      "text": "On a pre-tax basis, Apple's 4% preferred would offer a 80 basis point credit spread to 30-year U.S. bonds and a small spread to very high quality corporate bonds.",
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      "text": "iPrefs Should Yield About 4%",
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