“Media fairness is impossible.” writes our contributor today. “Media only seem to have a ‘liberal bias.’
“What it really has is revenue bias. Ad rates are a direct multiple of readership and viewership, both carefully audited, and audits show (have always shown) that ‘up-and-inners’ as a class overwhelming read/view news reports, while far fewer ‘down-and-outers’ do so.
“Ergo, if moguls want to expand readership/viewership (thereby increasing revenue), there is only one way to go — pander to the down-and-outers.
“The pandering appears to have liberal bias (the moral high ground, if you will). But it is nothing of the kind. It is simply a sales tactic.”
The reader concludes: “How would you ever outlaw that?”
Your Rundown for Tuesday, December 3, 2019:
“Twitter Inc. is joining its peers in the Big Tech club by issuing regular corporate debt,” Bloomberg reports. “It’s bringing an inaugural high-yield bond this week to raise $600 million at an eight-year maturity.”
Not that Twitter needs the money; instead, the president’s favorite social media platform hopes to send a message about the company’s stability.
Particularly since Twitter shares have looked so fragile lately…
The sharp drop-off in October came after Twitter reported disappointing revenue.
However, Bloomberg says: “With almost $6 billion of cash on its balance sheet, a market cap of $23.6 billion and just $2.1 billion of existing debt, the bond market will no doubt welcome the new junk bond with open arms, regardless of Twitter’s poor equity performance.”
Overall, “the new issue market for junk bonds is on fire this year because of investors’ relentless hunt for yield.”
The takeaway? While the Twitter bond issue will be one notch below investment grade, according to S&P Global Ratings, we say — for retail investors — stay away from the junk bond market altogether.
Market Rundown for Tuesday Dec. 3, 2019
S&P 500 futures are down 36 points to 3,078.
Oil is down 8 cents — priced at $55.96 for a barrel of WTI.
Gold’s added $16.40 to its price at $1,485.60 per ounce.
Bitcoin is down $24.71 to $7,352.64.
We’ll catch up tomorrow. Have a great day!
For the Rundown,