Companies are set to issue record debt for a 2nd straight month — and Bank of America says it's because the Fed 'solved' a looming credit crisis | Markets Insider

Companies are set to issue record debt for a 2nd straight month — and Bank of America says it's because the Fed 'solved' a looming credit crisisNew offerings totaled $22 billion on Monday, bringing the April sum to $229.7 billion and"within striking distance" of March's $261 billion record, the analysts wrote.

The borrowing activity was primarily fueled by the Fed's potent efforts to keep companies afloat amid the nationwide lockdown. Easing first took the form of interest rate cuts and liquidity injections before the central bank threw out its traditional playbook and created several targeted lending facilities.

The firm doesn't expect the trend to stop anytime soon. Credit drawdowns are set to increase as the primary market opens further, Bank of America wrote. Companies are also increasing the sizes of their credit lines, boosting the potential for bigger issuances down the road.

Solved you mean delayed for the benefit of the rich.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. will cap how much each bank can lend under emergency coronavirus program: memoThe U.S. government will cap how much each bank can lend under the emergency loan program designed to keep workers on payrolls amid the coronavirus pandemic, according to a memo seen by Reuters hours ahead of the reopening of the lending program. After they already made off with the bulk of it. Just go Bankrupt enough is enough
Source: Reuters - 🏆 2. / 97 Read more »