3 ms·
They haven't expected cheap debt from the government. Large corporations routinely cary debt to finance short term cashflow needs. Right now Walmart has about 6
by harryh 6y ago
They haven't expected cheap debt from the government. Large corporations routinely cary debt to finance short term cashflow needs. Right now Walmart has about 60B worth. The FED, as part of a large program of corporate debt purchases, has bought a grand total of about 9 million dollars worth of this. That's .015%.
Whatever gave you the idea that Walmart had this expectation is wrong.
- clairity 6y agoah, sorry, i misread it as $9B, which would have been a significant portion of their outstanding debt.
- harryh 6y agoThose 3 fewer zeros do make a bit of a difference. ;-)
- pbhjpbhj 6y agoIf it's $9 million why even bother, surely they could cancel a C-site bonus and cover that.
- harryh 6y agoThis wasn't a bespoke transaction between Walmart and The Fed. Walmart sells bonds on the open market all the time. The Fed just happened to be a buyer on that market this time.