whatok

19 ms·

151.
by whatok 6y ago
The US government is receiving warrants as part of the airline bailouts. In the case of AAL, they could potentially dilute existing shareholders by 10%. Ridiculously generous terms on everything considering the alternative.
152.
by whatok 6y ago
The recent Fed announcements mostly served to reopen the high yield primary market and the investment grade markets were wide open well before that; especially for a strong issuer like BRK.
153.
by whatok 6y ago
BRK issues regularly at the insurance company level. I wouldn't overthink it. Even with the recently issued USD bonds much wider, they're still yielding around the same at issue with rates much lower. Strong issuers like BRK shoul
154.
by whatok 7y ago
A lot of this is timing on reopening and how consumers are doing. If you just naively assumed a 1:1 fire to rehire ratio on some time window, there's still an extreme amount of friction involved in rebalancing that to previous levels.
155.
by whatok 7y ago
Ok, I'm just pointing out that this does not bail out airlines at all. It helps on the margin but airlines are very idiosyncratic right now and likely are going to require much different and flexible funding needs than what these facil
156.
by whatok 7y ago
I'm well-aware of what "those letters" mean. I hope you're able to contextualize that quote with the rest of that post as well as my subsequent reply.
157.
by whatok 7y ago
Yes, HYG has some HY airliners but that doesn't make the actual issuers available for any of these facilities. That's the point that I was making.
158.
by whatok 7y ago
You're making wildly sweeping statements about "extending and pretending" without having any of the underlying facts. I'm clarifying those statements with some underlying facts. Up to you to incorporate that into your wo
159.
by whatok 7y ago
Ford was only downgraded by a single rating agency in September and only recently downgraded by the rest last month; well after the initial model of these facilities was announced. Ford has been preparing for being downgraded and has the li
160.
by whatok 7y ago
The Fed buying junk bonds is completely misleading and likely only has consequences for a single company; Ford. Ford has more liquidity on-hand than GM (investment grade which means nothing right now) and can likely ride this out better tha
161.
by whatok 7y ago
Buying bonds on the open market absolutely helps companies that issue them because new issues are priced off secondary market. Are you going to buy a new issue bond at 5% yield when a similar secondary bond from the same company is at 10%?
162.
by whatok 7y ago
Right, but there's a massive difference between the broader high yield universe that would definitely see some credit losses pre-Corona vs recently downgraded companies that would likely be okay without this. These facilities were crea
163.
by whatok 7y ago
There's not a single high yield airliner that qualifies for this.
164.
by whatok 7y ago
I haven't had time to read through the muni details but they are linked below. As far as I know, every city/state qualifies. There's just restrictions on pricing vs rating and size vs previous outstanding. https://
165.
by whatok 7y ago
These are for companies that have either up to 2.5bn in revenue or 10k employees. Do you know how much payroll is for companies of that size?
166.
by whatok 7y ago
The Fed (rightfully) does not have the authority to do that.
167.
by whatok 7y ago
The Fed is buying a limited universe of high yield by issuers that were recently downgraded. The cutoff date happens to coincide around where Ford got downgraded. They are not (at least currently) buying wider universe HY. The HY ETF purcha
168.
by whatok 7y ago
That data looks wildly inaccurate and does not pass a sanity check at all. Take a look at anything from AAL's investor relations' page and it does not reconcile to anything like 3-15bn quarterly profit ever. https://ame
169.
by whatok 7y ago
Capital markets are open right now. There's a price but they are open.
170.
by whatok 7y ago
I'm telling you as a market participant that PIF's stake was not known at the time. Here's a link to CCL on EDGAR: https://www.sec.gov/cgi-bin/browse-edgar?company=carnival+cr... The filing date for the
171.
by whatok 7y ago
That's incorrect. PIF's stake was as of 3/26 while CCL did the equity deal on 4/1. I don't know if they participated in that equity deal but they would have to disclose if they increased ownership. The equity deal w
172.
by whatok 7y ago
If the public wouldn't buy airlines stock because of "bankruptcy risk" then why was Carnival Cruise Lines able to raise more than $6bn in debt and equity recently?
173.
Private Equity Firm Pushes for Broader Access to Fed Lending Program(nytimes.com)
2 points by whatok 7y ago|0 comments
174.
by whatok 7y ago
Zoom is a public company. The CEO owns 4% of it.
175.
by whatok 7y ago
For anyone excusing any of this, Zoom is currently a 34bn dollar company. There really are no "whoops, didn't expect to get this popular" excuses that are legitimate for all of these issues; especially when none of these thin
176.
by whatok 7y ago
You absolutely gave the right on borrow if you're among 99% of individual investors. There's a reason why your fees and commissions are low.
177.
by whatok 7y ago
It's almost always a prudent decision for a company to draw on loan facilities if they think things are going south. Draw while you still can and before you trip a covenant.
178.
by whatok 7y ago
You get what you pay for. It's definitely part of their competitive edge.
179.
by whatok 7y ago
I remote in to my machine running BBG on the trading desk from my office all the time with no difficulties. Also remote into my office desktop from home and log into BBG that way as well.
180.
by whatok 7y ago
Yes, I primarily use mine over remote desktop for the direct line to BBG and in-house programs need more power than a laptop provides. Definitely have had to adjust contrast settings more than I would like but nature of the beast I guess.

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