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> The action by the Federal Reserve has been lauded by investors for easing conditions in credit markets after they rapidly deteriorated in March, avoiding a po
by hankchinaski 6y ago
> The action by the Federal Reserve has been lauded by investors for easing conditions in credit markets after they rapidly deteriorated in March, avoiding a potentially catastrophic corporate cash crunch that could have triggered a wave of bankruptcies.
I wonder why BKR is in the list, it does seem to have a strong balance sheet and no need for a credit lifeline like say PM that does have for example negative equity.
- nappy-doo 6y agoI assume you mean BRK. If that's the case, BRK borrows at a very cheap rate (in the case the bonds purchased, their coupon is 4%, which is kinda high for BRK). BRK borrows for a couple of reasons, but chief among them are that sometimes it's better to write bonds (for tax reasons), than it is to use cash. At 4%, I can see that being the case.
- hankchinaski 6y agoright makes sense - noob here