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Rusty Shackelford

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Posts posted by Rusty Shackelford

  1. 5 hours ago, Fudge Nuggets said:

    Yeah, your last sentence is what I'm thinking.  These ETFs hold corporate debt, but that debt has already been issued and the companies received the money from those bonds already.

    Someone buys units of an ETF it's not like the companies are getting any more capital.  I guess it props up the overall corporate debt market to keep interest rates in check and provides a synthetic demand for more corporate debt until things get back to normal.  Is that the reasoning behind it?

    Yes, it’s to support companies future bond issuance. They’re gonna need to borrow a lot more. 

    • Like 1
  2. Fed Has Purchased $1.8 Billion of Corporate-Bond ETFs So Far

    May 21, 2020, 3:40 PM CDT

    Federal Reserve purchases of exchanged-traded funds invested in corporate debt totaled $1.8 billion in the first six days of the program, according to data published Thursday.

    The ETF purchases, which are part of an emergency lending program aimed at backstopping corporate debt markets during the coronavirus pandemic, were revealed in the U.S. central bank’s weekly balance sheet update. The data also showed total assets held by the Fed rose to a record $7.04 trillion in the week through May 20.

    The Fed began buying ETFs through its so-called Secondary Market Corporate Credit Facility on May 12. Under the program, it plans to make both outright purchases of corporate bonds as well as ETFs invested in the asset class, including potentially some sub-investment grade debt.

    The weekly balance sheet data don’t disclose which ETFs the Fed bought, though the central bank has said it will disclose the names of borrowers participating in the program at least once a month.

    https://www.bloomberg.com/news/articles/2020-05-21/fed-has-purchased-1-8-billion-of-corporate-bond-etfs-so-far

  3. That big ol' building was the textile mill
    It fed our kids and it paid our bills
    But they turned us out and they closed the doors
    We can't make it here anymore

    See all those pallets piled up on the loading dock
    They're just gonna set there till they rot
    Cause there's nothing to ship, nothing to pack
    Just busted concrete and rusted tracks
    Empty storefronts around the square
    There's a needle in the gutter and glass everywhere
    You don't come down here 'less you're looking to score
    We can't make it here anymore

    The bar's still open but man it's slow
    The tip jar's light and the register's low
    The bartender don't have much to say
    The regular crowd gets thinner each day

    Some have maxed out all their credit cards
    Some are working two jobs and living in cars
    Minimum wage won't pay for a roof, won't pay for a drink
    If you gotta have proof just try it yourself Mr. CEO
    See how far $5.15 an hour will go
    Take a part time job at one of your stores
    Bet you can't make it here anymore

     

    • Like 1
  4. On 5/8/2020 at 2:56 PM, Fudge Nuggets said:

    Playing $SLAB for the hundred dollar roll.  That's the theory that when a stock breaks $100 it's going to run to $104 - $106.  If not it's going back to $80.

    Guess which way this fucker probably goes?

    Got no $SLAB, $100 or mamacita. 

    Feeling cry.

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