Corporations to raise capital ahead of potential year 2000 glitchesgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Demand stayed heavy even as more corporations are headed to the corporate debt market in the near future to raise capital ahead of potential year 2000 computer glitches in the fourth quarter.
The abundance of corporate supply at a time when the U.S. Treasury is planning to buy back billions of dollars of government debt has shown up in wider 10-year swap spreads -- the most widely used indicator of relative demand for risk.
Swap spreads measure the gap between government bond yields and the cost of swapping between fixed and floating interest rates -- roughly the cost of borrowing for a corporation with double-A rated credit such as Wal-Mart. These spreads have recently ballooned to their widest levels in a decade, traders said.
-- (M@rket.watching), August 05, 1999
Oh! I get it...Corporations can stock up on CASH prior to the ROLL but the 'little people' can't withdraw THEIR OWN MONEY to tide them over.
People, does anyone believe that 2000 is an ELECTION year??
-- K. Stevens (kstevens@It's ALL going away in January.com), August 05, 1999.
The article is not about cash. The kinds of transactions referenced in the article, i.e. buying/selling billions of dollars of bonds and/or other debt instruments, are not done in cash.
-- Jerry B (email@example.com), August 05, 1999.