CLOSE

YOU ARE USING AN OUTDATED BROWSER

This website is not compatible with your web browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.

Money Advisor Wealth Management Worldsource

Money Advisor Wealth Management Worldsource

Your future is looking up We keep our clients informed about the news that matters most.

Federal Reserve Saves Corporations Billions

An Astounding Number!

 

 

I came across this information and thought I would share it with you!

 

 

Federal Reserve Saves Corporations Billions

 

According to Bloomberg, due to the Federal Reserve’s quantitative easing program and the record low interest rates that have resulted, American corporations have saved over $700 billion in interest payments from the stimulus. The article details that corporate bond yields, or the cost a company pays to borrow money through issuing debt, have dropped from an average of 6.14 percent before the Lehman Brothers bankruptcy rocked the global financial markets, to an average of 4.16 percent today. Bloomberg estimates that this translates to savings of $15.4 million annually for every $1 billion that is borrowed. And, considering corporations have issued $5.16 trillion of debt over this time period, it has saved these companies $700 billion. To put that number into perspective, Bloomberg points out the entire annual economic output of Switzerland is $632 billion. These savings have allowed corporations to raise their capital expenditures, or money spent on company projects for future growth, by 8.7 percent in the second quarter of 2013 which is the highest increase in over a decade, according to JPMorgan.

Weekly Focus – Think About It

“Our prime purpose in this life is to help others. And if you can’t help them, at least don’t hurt them.”

Dalai Lama, spiritual leader of Tibet

Feel free to contact us with inquiries at any time! Contact us

Money Advisor Wealth Management

4 - 11010 46 Street SE
Calgary, AB T2C 1G4

Phone: 403.214.7215
moneyadvisor.ca

Worldsource Financial Management

Worldsource Financial Management Inc., Sponsoring Mutual Fund Dealer. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc.

Other Products and Services are offered through Money Advisor Wealth Management.