Probably stupid to tweet this, and I do so with suitable humility knowing full well I could be totally wrong (no one really knows), but this really does feel like the bottom (for markets; not the economy/corona spread). 1/n
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Since the GFC, most large corporates manage their finances such that they have ample liquidity at least 12 months out, including committed bank lines/revolvers. A lot of funding is long term also these dahs given permissible debt markets in recent years. So wouldnt overest risk.
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I don't know if banks can/would pull the lines. Companies were paying a fee specifically for that liquidity, though, so it seems unlikely. Some companies are maxing out their revolver loan early. They're anticipating possible liquidity/solvency issues with the bank, I think.
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Banks can't pull contractual lines. And it's standard practice to draw down revolvers in times of stress to boost on-hand liquidity. Banks are liquid and central banks are also further acting to boost short term system liquidity also.
End of conversation
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