The Non-Bailout: How the Fed Saved Boeing Without Paying a Dime

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The Fed’s decision to use its near limitless balance sheet to purchase corporate bonds eased liquidity so much that it was a game changer for the company, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly.

Ultimately, it allowed Boeing to raise $25 billion from private investors and withdraw its request for a government rescue, avoiding the restrictions that would have certainly been imposed.

Boeing entered Thursday hoping to raise between $10 billion and $15 billion by selling bonds with maturities stretching as far out as 40 years, the people said. As demand for the offering peaked at over $70 billion, company officials realized they didn’t need to look any further for funds, and set the final size of the offering at $25 billion, turning it into the largest U.S. corporate bond sale of the year.


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