Great paper put out by colleagues at UCLA, UIUC and Philly Fed on the topic of corporate bond liquidity during the Covid-19 pandemic. One of the more interesting findings was that not only did liquidity conditions improve for bonds that were eligible for the Fed’s lending/purchase programs, but also for bonds that were ineligible. Hence,…
Issuers have rushed to market to sell more than US$660bn of the US high-grade bonds in the roughly two months since the Federal Reserve announced its corporate bond purchasing program. Although there is no sign of the issuance slowing, the looming risk of a second wave of Covid-19 only heightens the uncertainty for issuers seeking…
One expected consequence of the Covid-19 crisis from a human and economic cost perspective, is that people will almost certainly expect and insist on greater resilience in the event of another crisis Source: GARP | Global Association of Risk Professionals The human and economic costs of the Covid-19 crisis are already enormous, and the final…
The author opinions that unlike in the periods of the global inflation of the 1970s and 1980s, the case for central bank independence will not nearly be as strong in the post-pandemic era, with the US Federal Reserve for one at risk of coming under over political control. Source: Bloomberg The coronavirus crisis is quite…
The Fed has been lauded for doing more for the broader Main Street economy during this pandemic-induced crisis than back in ’08-’09 when seen as mostly as Wall Street’s savior. Source: Bloomberg Federal Reserve Chair Jerome Powell and his colleagues had a hard decision to make as the coronavirus epidemic worsened in February and March….
COVID-19 crisis has taken a big step toward policy co-ordination along the lines of modern monetary theory. Source: Financial Times Some day this crisis will end. When, and at what human and economic costs, remain big unknowns. But when markets return to something like normality, investors are likely to find a fundamentally altered political and…
Former Wall Street money manager warns of the COVID-19 crisis as one of the biggest insolvency risks in history. Source: Forbes Bitcoin has largely failed to perform as a so-called safe-haven asset during the coronavirus crisis so far—though that could have begun to change. The bitcoin price fell sharply last month amid a broader market…
Despite the human costs of the COVID 19 pandemic, more innovative use of artificial intelligence and machine learning in healthcare is one example on how this can be applied to enhance the financial industry. Source: CTV News MONTREAL — Despite years of discussions between politicians and doctors, the Quebec government couldn’t find a way to…
China is facing its first quarterly contraction in decades and the weakest year since 1976. Now a second COVID-19 virus shockwave appears to be hitting Chinese factories. Source: Bloomberg Since last week, emails from foreign clients have been flooding into export manager Grace Gao’s in-box, asking to delay orders already made, putting goods ready to…
The spectre of a solvency crisis for the broader economy has jolted central banks and governments into action. Source: Financial Times In the fight to stop the coronavirus outbreak destabilising the global economy, central banks have gone “all in” with intervention after intervention to calm capital markets. Governments are following closely behind, announcing massive spending…
LONDON, UNITED KINGDOM, ENGLAND, February 27, 2024 /EINPresswire.com/
