The Fed thawed debt market and big companies built a $500 billion war chest to fight the virus

Corporate debt issuance continues at a record pace with another $25.7 billion in investment grade bonds hitting the market Monday, on top of nearly $100 billion last week.

A man wears a protective mask as he walks on Wall Street during the coronavirus outbreak in New York City, New York, U.S., March 13, 2020.A $2.25 billion United Airlines debt offering failed last week, but that does not signal trouble for others in the corporate debt market where the Fed's promise of liquidity has corporate America issuing new debt at a record pace for a seventh week.

Companies are taking advantage of low yields to refinance older, higher yielding debt, pay down bank loans and build cash hoards to get them through the recession and a period of uncertainty. They are also looking to issue debt to reduce their involvement in the short-term commercial paper market, which was frozen before the Fed announced a separate program for that market.

Now investors are waiting to see the Fed put its plan into action, since it was expected to start some of its $250 billion in corporate debt purchases in early May. The Fed has also provided a lending backstop, promising to help investment grade companies issue debt if they become otherwise unable. But there has been no new word or direction from the Federal Reserve.

It is relatively cheap for investment grade companies to issue. The early talk was that A-minus rated Disney's 5-year note would yield 175 basis points above Treasurys.

You mean tax payers right?

Why was Tyler Mathersion able to get a haircut ? I guess he’s special. Him and his 14 yr old son.

article gotta be read, well

blackrock will buy junk bonds through the FED, breaking the established law. the debt you are going to pay your friend on foot, not them, they are going to get richer

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