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Yeah, nothing in default yet from EOD friday in LQD. Of about 2272 CUSIPS in LQD then, 58 are rated BB, Baa1 392, Baa2 406, Baa3 251. I expect that it will happ
by cinquemb 6y ago
Yeah, nothing in default yet from EOD friday in LQD. Of about 2272 CUSIPS in LQD then, 58 are rated BB, Baa1 392, Baa2 406, Baa3 251. I expect that it will happen soon that at least a few of these go into default.
- vmception 6y agoUnless they directly issue to the fed and use the proceeds to pay off prior debt This is very commonplace in corporate credit, aside from issuing directly to the federal reserve, which has offered verbatim to be the sole investor! Free money! I read the whole CARES Act and found this extra large bailout to be the biggest market distortion and thought it should have more air time than PPP or unemployment insurance boosts
- cinquemb 6y ago> Unless they directly issue to the fed and use the proceeds to pay off prior debt True, it could happen, but it would take away from the profits banks and secondary market participants get from issuing it directly them selling the debt to treasury dept leveraging fed bucks :P
- vmception 6y agohaha thats also happening, the fed is operating two new programs Check it out Primary Market Corporate Credit Facility Secondary Market Corporate Credit Facility https://www.federalreserve.gov/monetarypolicy/pmccf.htm https://www.federalreserve.gov/monetarypolicy/pmccf.htm https://www.federalreserve.gov/monetarypolicy/smccf.htm https://www.federalreserve.gov/monetarypolicy/smccf.htm
- cinquemb 6y agoYup, i've been following the alphabet soup of insolvency for a while[0] [0] https://wolfstreet.com/wp-content/uploads/2020/07/US-Fed-Balance-sheet-2020-07-02-SPV-.png https://wolfstreet.com/wp-content/uploads/2020/07/US-Fed-Bal...