Did Carnival get a backdoor Fed bailout?

Apr. 28, 2020 4:03 AM ETCarnival Corporation & plc (CCL)CCLBy: Yoel Minkoff, SA News Editor94 Comments
  • An interesting piece in the WSJ appears to be highlighting the role of the Fed in picking winners and losers of the coronavirus epidemic.
  • In early March, Carnival (NYSE:CCL) found a group of hedge funds willing to offer a cumbersome lifeline to the cruise operator, with up to $6B at "an annual interest rate exceeding 15% and potentially give the lenders a stake in the company."
  • That all changed on March 23 when the Fed "defibrillated bond markets with an unprecedented lending program," allowing Carnival to lower those rates and grab a ton of taxpayer money by way of lender investment.

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