- The Federal Reserve's intervention in corporate credit markets has pushed spreads and financing yields towards historic lows despite the continued economic stress.
- Federal Realty Trust, a retail-focused REIT, tapped unsecured debt markets earlier this month for five year-funding with a paltry 1.25% coupon.
- The equity markets have responded negatively to the business prospects of FRT in 2020, sending the retail REIT's equity 40% lower.
- This article looks at the implications of very cheap debt financing for FRT and other companies uniquely pressured by the current economic environment.
- Fed-impacted front end credit markets may be masking credit stress for bond investors, but strategic management teams could potentially use easy credit to their ability to improve prospects.
For further details see:
The Federal Reserve And Federal Realty