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Today we have a crossover piece with @theprospect & @theintercept. I wanted to quantify just how much the Federal Reserve& #39;s corporate bailout *announcements*- not spending any money- has been worth to the investor class. Turns out it& #39;s trillions of dollars https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
Since the Fed announced March 23 that it would purchase corporate bonds, the three biggest weeks in the history of corporate bond sales have happened. Dozens of companies that couldn& #39;t otherwise borrow at such low rates got in on it https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
Funds that track the corporate bond market all resemble a panoramic view of the Grand Canyon, hitting a low point on March 23, before shooting back up. https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
Bond spreads, the cost of borrowing, have shrunk, even in the risky junk bond market, as investors rush in, confident of a Fed guarantee. https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
The Fed’s support disproportionately flows to large corporations with access to credit markets. “Small and midsized businesses with much more need are more likely to struggle.” https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
Congress made the choice to empower the Fed, rather than figure out how to adequately support the rest of the citizenry. We have a system for central bankers to throw a life preserver at capital; everyone else must swim several miles to shore themselves. https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
Thanks to the research and graphics team at @theintercept. This is available on both sides. I really wanted to document how the Fed didn& #39;t even need to spend a dime to save capital. Check it out! https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/">https://prospect.org/coronavir...
