Nokia is taking a proactive approach to dealing with its deteriorating cash reserves. Starting this Friday, the Finnish company will issue a new batch of bonds in Europe that it hopes will raise up to €750 million (roughly $980 million). The long-term debt, which will be convertible into ordinary Nokia shares come 2017, should solidify Nokia's liquidity over the short term while also helping to service maturing debt responsibilities the company already has on its books. Company CFO Timo Ihamuotila had this to say:

"This offering is designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market."

With interest rates being broadly suppressed by the placid global economy, taking on extra debt now makes a lot of sense for Nokia. Whether investors will be willing to match its valuation, however, particularly with the company stock being rated as "junk" by all the big credit rating agencies, remains to be seen.