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A comment on Fed to buy junk bonds, lend to states in fresh virus support. Parent comment

Re:Fed to buy junk bonds, lend to states in fresh virus support by ipsum2 on Thursday April 09, 2020 @06:00PM (#22827648)
> Without serious infusion of cash there is a notable nonzero change they would fail

This is an exaggeration. Many companies purposely have junk bonds so they can borrow more money at a low rate, compared to investment grade bonds.

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Re:Fed to buy junk bonds, lend to states in fresh virus support by gruez on Thursday April 09, 2020 @09:45PM (#22829108)
>Many companies purposely have junk bonds so they can borrow more money at a low rate, compared to investment grade bonds.

What? Conventional wisdom says that risky (junk) bonds would have higher yields (aka costs for the borrower) than safer (investment grade) bonds.

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Re:Fed to buy junk bonds, lend to states in fresh virus support by A4ET8a8uTh0 on Thursday April 09, 2020 @06:11PM (#22827737)
Yes. Their purpose is to have funding. Do you think they pay higher interest rates out of the goodness of their hearts? I am not sure what you are arguing here.
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