f7ben Posted August 4, 2020 Share Posted August 4, 2020 Why is the fed printing trillions so they can make essentially interest free loans to companies like Alphabet who has 123 billion in cash on hand? Why is the Fed destroying the value of our dollar so the richest amongst us can get significantly richer? And why is nobody questioning these actions? Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted August 4, 2020 Platinum Contributing Member Share Posted August 4, 2020 (edited) NEW YORK (Reuters) - Alphabet Inc (GOOGL.O) borrowed $10 billion in the investment-grade corporate debt market on Monday, the Google parent’s largest ever bond issue, which it secured at its lowest-ever cost of financing. Of the $10 billion on offer, the $1 billion five-year tranche was issued at a coupon of 0.45%, the lowest coupon seen at that maturity since Apple Inc (AAPL.O) issued a $1.5 billion five-year note at 0.45% in 2013. Investor appetite was fierce for the tech giant’s six-part bond, as low interest rates and corporate bond buying from the Federal Reserve continues to support issuance. The deal garnered more than $31 billion in demand, according to Refinitiv IFR. Previously, Alphabet’s lowest coupon was 1.25% on a $1 billion May 2014 note. “We’re at a stage where these extremely high-quality issuers - of which Alphabet is one - are going to price very very tight. That’s because there are a lot of buyers who need short-term, don’t-need-to-think-about-it money. You’re getting two times the yield on the five-year Treasury,” said Tom Graff, head of fixed income at Brown Advisory. Last week Alphabet reported its first quarterly sales drop in its 16 years as a public company. Its share price was largely unmoved however, as the loss in sales was offset by a recovery in Google’s ads business. “There is a very narrow set of companies that were already super high quality, that are not impacted by this recession we’re going through right now. And Google is one of them,” said Graff. Edited August 4, 2020 by Highmark Quote Link to comment Share on other sites More sharing options...
Rod Posted August 4, 2020 Share Posted August 4, 2020 Sounds like a smart investment Quote Link to comment Share on other sites More sharing options...
f7ben Posted August 4, 2020 Author Share Posted August 4, 2020 2 minutes ago, ACE said: Sounds like a smart investment Dollar lost 5% of its value last month Real fucking smart Quote Link to comment Share on other sites More sharing options...
Rod Posted August 4, 2020 Share Posted August 4, 2020 Just now, f7ben said: Dollar lost 5% of its value last month Real fucking smart There’s a reason for that Quote Link to comment Share on other sites More sharing options...
f7ben Posted August 4, 2020 Author Share Posted August 4, 2020 4 minutes ago, ACE said: There’s a reason for that Yah....we printed 7 trillion dollars out of thin air and gave most of it to rich people Quote Link to comment Share on other sites More sharing options...
Rod Posted August 4, 2020 Share Posted August 4, 2020 3 minutes ago, f7ben said: Yah....we printed 7 trillion dollars out of thin air and gave most of it to rich people It seems to work Quote Link to comment Share on other sites More sharing options...
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