Re:Fed to buy junk bonds, lend to states in fresh virus support
by phkahler on Thursday April 09, 2020 @11:37AM
(#22823574)
If they are buying bonds on the open market then it's not helping the companies that issued them, its helping investors. If they are buying newly issued bonds then you can argue its helping the companies.
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Re:Fed to buy junk bonds, lend to states in fresh virus support
by whatok on Thursday April 09, 2020 @11:45AM
(#22823637)
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%?
Re:Fed to buy junk bonds, lend to states in fresh virus support
by missedthecue on Thursday April 09, 2020 @07:34PM
(#22828367)
Supporting the secondary market allows firms to place new issues, and raise the capital they need to sustain themselves through this. Essentially, you just don't want the market locked up.