IAG 1st Quarter Results
May 7, 2020, 6:04 am
#17
Join Date: Jul 2012
Location: London
Posts: 489
But i suspect that if it is price sensitive information (which i suggest it would be) the companies themselves have to disclose it. So confidentiality doesn't really work!
May 7, 2020, 6:22 am
#20
Moderator: British Airways Executive Club, Iberia Airlines, Airport Lounges and Environmentally Friendly Travel
Join Date: Jan 2003
Location: London, UK
Posts: 22,212
That’s not quite correct either. Like all the special measures, the CCFF money is being borrowed by HMG and that borrowing will be repaid by HMG when BA repays HMG.
The £300m will only come from your pocket if BA defaults, in the sense that the taxpayer would have to repay the borrowings or forever pay interest on. And that’s exactly what the picture would look like with a guarantee that got called upon.
The £300m will only come from your pocket if BA defaults, in the sense that the taxpayer would have to repay the borrowings or forever pay interest on. And that’s exactly what the picture would look like with a guarantee that got called upon.
May 7, 2020, 6:27 am
#21
Join Date: Aug 2016
Location: United Kingdom
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May 7, 2020, 7:28 am
#23
Join Date: May 2007
Programs: BA Blue, EI Silver, Honours Gold, Marriott Gold
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It will only be firmed when the MAX is recertified. That has not happened, as yet. IAG are not yet committed to the MAX, I suspect that there will be great deals offered by both Airbus and Boeing in the aftermath. It is entirely plausible that IAG might not need the MAX, or half the A320s. Depends how traffic recovers.
May 7, 2020, 8:02 am
#24
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Join Date: Feb 2004
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That’s not quite correct either. Like all the special measures, the CCFF money is being borrowed by HMG and that borrowing will be repaid by HMG when BA repays HMG.
The £300m will only come from your pocket if BA defaults, in the sense that the taxpayer would have to repay the borrowings or forever pay interest on. And that’s exactly what the picture would look like with a guarantee that got called upon.
The £300m will only come from your pocket if BA defaults, in the sense that the taxpayer would have to repay the borrowings or forever pay interest on. And that’s exactly what the picture would look like with a guarantee that got called upon.
In any event, when the Government borrows money, it is the same as you and me lending it money. We are still on the hook for it. There is no magic money tree.
May 7, 2020, 8:06 am
#25
Join Date: Oct 2015
Programs: BA Gold for Life
Posts: 1,390
That's not true either, because the Government is not borrowing money DIRECTLY to match requests under the CCFF. On the day it gives BA £300m it does NOT issue £300m of gilts. There is a big pot of Government cash, some borrowed and some not, and this is taken from that big pot.
In any event, when the Government borrows money, it is the same as you and me lending it money. We are still on the hook for it. There is no magic money tree.
In any event, when the Government borrows money, it is the same as you and me lending it money. We are still on the hook for it. There is no magic money tree.
May 7, 2020, 9:10 am
#26
Join Date: Sep 2013
Location: Scotland
Programs: BAEC - Silver | Hilton Honors - Gold
Posts: 299
May 7, 2020, 9:14 am
#27
Original Poster
Join Date: Jun 2003
Programs: BA, IHG, 5C
Posts: 4,413
That's not true either, because the Government is not borrowing money DIRECTLY to match requests under the CCFF. On the day it gives BA £300m it does NOT issue £300m of gilts. There is a big pot of Government cash, some borrowed and some not, and this is taken from that big pot.
In any event, when the Government borrows money, it is the same as you and me lending it money. We are still on the hook for it. There is no magic money tree.
In any event, when the Government borrows money, it is the same as you and me lending it money. We are still on the hook for it. There is no magic money tree.
In fact I/we are misrepresenting CCFF. The counterparty is the BoE not HMG. When IAG's dealer (bank) offers £100m of IAG's commercial paper to the BoE, the money is given to the dealer (to be provided IAG) through the printing of money. The dealer has a deposit account at the Bank of England, and the BoE literally edit the balance of that account +£100m for them to withdraw.
I believe in magic even if you don't!
May 7, 2020, 12:33 pm
#28
Join Date: Feb 2018
Location: UK
Programs: BAEC Silver
Posts: 153
I also believe this is the case with the majority of western governments and their respective central bank at present.
May 7, 2020, 2:43 pm
#30
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I'm not a fiance person but my understanding is yes, the vast majority of the new debt being issued by HMG is being "bought" by the BoE printing money, sorry, quantitative easing program. None of this money is actually coming from anyone.
I also believe this is the case with the majority of western governments and their respective central bank at present.
I also believe this is the case with the majority of western governments and their respective central bank at present.