Fed Offers More Support for Loans, Corporate Debt
The Fed's latest moves in response to the coronavirus crisis take it "well beyond the lender-of-last-resort functions it played" during the Great Recession.
The Restructuring Remedy
As painful as this reckoning is likely to be, substantial restructurings must occur across several industries on accelerated timelines.
Moody’s Cuts Corporate Debt Outlook to Negative
The Fed's unusual intervention in the market will help but "is unlikely to prevent distress at businesses with less certain long-term viability."
Fed Expands Asset Purchases to Boost Markets
“We are now in QE infinity, again,” a CIO says after the Fed announced unlimited asset purchases in response to the coronavirus crisis.
Banks’ Stress Tests to Focus on Leveraged Lending
The 2020 tests will give the Fed "increased information on how leveraged loans and collateralized loan obligations may respond to a recession."
IMF Warns of $19 Trillion Corporate Debt Risk
Accommodative monetary stimulus has encouraged financial risk-taking, leading to “worrisome” levels of debt with poor credit quality, the Fund says.
What Happens When the Bid Goes to Zero?
If the Fed is going to conduct monetary policy by manipulating asset prices, it should expect to see periods of extreme market volatility.
Rising Interest Rates Could Crush Some Small Caps
Nonfinancial corporate debt is at a record high, and for some companies the leverage is unsustainable, says an IIF paper.
IMF Warns of China Corporate Debt Dangers
With corporate debt running at 145% of China's GDP, a top Fund official urges Beijing to tackle the "key fault line" in the economy soon.