Just for Thinking ....
Read? Insurance, Leverage, and Peace of mind.
May be the banks are thinking that these corporations are too risky to lend them more money. The corporations have no better choice but to borrow money from the stock market through bonds or perpetual securities by offering "attractive" interest payment to lenders in the current ultra low interest rate environment. It is damn "attractive".
Banks are not lending more money directly to these corporations. But I heard some "clever" retail investors were borrowing directly from the banks and then lent their borrowed money to these corporations by leveraging on the bank loans to buy these bonds or perpetual securities to earn the differences by taking on the risks which are deemed too high by the bankers.
The bankers are in the business of lending and they are not doing it. Are you thinking it loud?
Did you invest in Econ Healthcare’s IPO? - When it comes to investing on SGX, I’m not a fan of companies who delist only to re-list again later. Which is why I avoid their IPO, and tell you guys I h...
5 hours ago