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A comment on Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record. Parent comment

Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by onlyrealcuzzo on Friday April 24, 2020 @10:48AM (#22968512)
Part of what allows a company to have insane cashflow is issuing corporate bonds at artificially low prices because the Treasury is manipulated by the Fed.
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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by adventured on Friday April 24, 2020 @11:08AM (#22968762)
That doesn't inherently follow at all. It very much depends on the company in question. IBM has a very profitable business and has for the past decade.

They're paying around mid 2.x% interest on their debt ($1.3b interest expense last fiscal year). You can double that rate, and IBM can safely handle the cost. They can afford to pay far higher interest rates on their debt while still producing excellent profitability.

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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by onlyrealcuzzo on Friday April 24, 2020 @03:40PM (#22972099)
The interest on their debt would be 6-8% if the US Treasury yield wasn't artificially manipulated by the Fed to ~0%.

They'd be paying 3-4x that on interest. That's a decent chunk of their profits / buybacks.

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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by bequanna on Friday April 24, 2020 @10:55AM (#22968605)
Not sure I follow. What does the US Treasury have to do with private debt issuances? Did you mean that interest rates are manipulated by the Fed?
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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by Donald on Friday April 24, 2020 @11:18AM (#22968894)
New Fed programs have been stood up in the last month that directly buy corporate debt.
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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by bequanna on Friday April 24, 2020 @11:41AM (#22969180)
That’s a Fed program. Fed != Treasury.

What does this have to do with the Treasury?

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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by abfan1127 on Friday April 24, 2020 @11:56AM (#22969392)
I think he mis-spoke by typing the Treasury.
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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by AnimalMuppet on Friday April 24, 2020 @12:26PM (#22969821)
I have the impression that onlyrealcuzzo was referring to something longer term than the last month, though.
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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by onlyrealcuzzo on Friday April 24, 2020 @03:39PM (#22972086)
US Bonds are usually referred to as Treasury bonds, which the Fed buys, to manipulate the yield.
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