The Speculative Stocks....

[fenders53]

(04-09-2020, 10:24 AM)Otter Wrote: So, now rumors that the Fed will buy up junk bonds:

https://www.marketwatch.com/story/fed-ma...2020-04-08

There has already been a huge increase in "fallen angels" (former investment grade dropping to junk on credit downgrades), and the spread between the Fed's 0% rates for its Primary Dealers and what banks are willing to lend to businesses is huge (reports that Tilman Fertitta is seeking financing at 15% to save his casino/restaurant empire, which is admittedly one of the riskiest lending sectors right now).

Should be real interesting once significant percentages of former investment grade and newly minted junk go into default.

I saw discussion of this a week ago.  This is all about a reasonable enough economy to win an election.  Get about anything you want as long as you allow the other side to give gifts to their base too.  Probably fighting over 3% of the vote that is actually undecided.  It's so transparent.  Almost any Biz can get a loan as long as you agree to a few rules, and those rules may be negotiable if you threaten to just lay off your workforce and skip the help.