Put a fork in it 4/9/20 — now the Fed is buying junk bonds (tier, buy)
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We’ve reached the end game now as the Federal Reserve is buying junk bonds. They do have their standards, the paper has to be rated BB-/Ba3 or better (lol).
I don’t know much about what they’re doing, but if their idea is to stabilize the system, wouldn’t that be the best bang for their buck?
The ratings higher than that will probably get funding. Ordinarily this group probably would get some interest, but maybe won’t because of fear. So they step in as the lender of last resort to stabilize a market that would normally exist and keep it going to prevent failures. But they aren’t wading all the way down to lower grades to save just anyone.
It’s like an old professor of mine used to say. You got the high achievers that are self driven and you can’t do much to help them. You got the zombies at the bottom who don’t care and you can’t help them. Your job is to bring value to the middle tier. You can get the most out of helping them.
Yeesh. Someone in the CDC needs to start talking to the FED and letting them know that we're going to have some level of economic shutdown and restriction for at least 12 more months.
At this rate, the only thing they're going to solve is the toilet paper shortage, since we can all just use crumpled-up Benjamins.
Works for me ,,, I have been sweet on high yield the last few weeks since the sell off in them ...I own a few hundred thousand worth of fidelity high yield fund ...I see hyg up over 5% today
Works for me ,,, I have been sweet on high yield the last few weeks since the sell off in them ...I own a few hundred thousand worth of fidelity high yield fund ...I see hyg up over 5% today
Reminds me of a scene in the film The Pianist where a group of Polish Jews is waiting at the train platform for their trip to the death camp. A young boy is walking around the sullen crowd selling candy and finally an old man gets angry and asks him “What are you going to do with the money?”.
Dont worry I know what I am doing with the money ......
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