Thread regarding AT&T layoffs

More layoffs coming soon as commercial paper market is seizing.affects servicing T's debt

Most companies with highly leveraged positions like T , rely on these market to handle their regular rolling credit/debt, this market much like in 08 are seizing up, because banks and lenders fear the virus economic fallout and the spreads for new credit is growing...and will likely seize up in a matter of days unless the Fed comes to the rescue.

This likely means a lot of companies will run into liquidity events. This means companies will need to furlough workers to make the cash last. May not be layoffs but unpaid leave, in any case it's going to be unpleasant

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| 1144 views | | 5 replies (last March 18, 2020) | Reply
Post ID: @OP+141uksQt

5 replies (most recent on top)

Oops, “the bank” below means the Fed, coming to the rescue.

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Post ID: @1ito+141uksQt

The bank on Tuesday said it will use emergency powers to purchase up to $1tr in short-term corporate debt directly from companies, reinstating a funding facility that was created during the 2008 financial crisis.

So that should soften the blow.

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Post ID: @1wcz+141uksQt

Lots of workers getting paid too.

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Post ID: @ygd+141uksQt

amazing how stocks drops because of things like this. do we think companies drop more than half in value in two weeks? nothing but the elite stealing money from the people who do the work.

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Post ID: @jxp+141uksQt

One thing is for sure, any T cash shortage will not keep Ratty or Stinky for being paid. Heck, they will get a bigger increase because they were able to find a loan-shark to take on T debt! Ratty and Stinky are a bit upset as all their Golf Tournaments, Award Shows, and Basketball Games have been canceled.

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Post ID: @prt+141uksQt

Get rid of those chronic underperforming complainers. The cancer that is always bringing others down.

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Post ID: @dac+141uksQt

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