logoalt Hacker News

elbenshira • today at 7:08 PM • 4 replies • view on HN

> Let’s be clear about what this means: it gives them access to the corporate bond market. What they’re lobbying for is that pension funds, life insurance, etc., can take exposure to these companies. Suddenly the everyman, your mom and dad, have significant exposure to these companies and their circular financing deals without even knowing it. This is disgusting.

What's the problem? Fund managers—who are in a position to understand the risks more than your everyday investor—can decide if they want buy these bonds or not, just like any other public corporate bond.


Replies

nickysielicki • today at 7:16 PM

Most pensions and life insurers and so on are mandate constrained to investment grade only.

2008 wasn't fund managers deciding all together in unison to buy bad mortgages. It was AAA ratings on diversified MBS that should have been rated much lower giving them cover to load up.

samiv • today at 10:48 PM

Someone working for a fund and whose job is to INVEST is going to loose their job for NOT buying into the ponzi scheme that is running 20% growth YoY

intrasight • today at 8:15 PM

CoreWeave is making the same case for its bonds.

➕ show 1 reply