Originally Posted by
Excargodog
Additional credit is always available - until it isn’t. But COST of borrowing that money generally goes up with the rate of inflation, which right now is sort of starting to skyrocket:
Especially for bonds rated junk.
AAGs issue is also that additional credit requires them to hold more cash. They used to need around 7 billion in cash (this was early 2020), they have since borrowed 15 billion more so they must be close to 10 billion required. There will be a tipping point, obviously no-one knows where that will be.