Fed action fails to dampen spreads for riskier credits

Borrowing costs for some issuers are still two to three times the historical average

rates spread

The announcement of two major buying programmes by the Federal Reserve has so far failed to bring companies’ borrowing costs back down to earth, and some in the market worry the measures will be of limited help even once they are eventually launched.

On March 17, the Fed unveiled a plan to start buying three-month high-grade commercial paper (CP), followed by a statement on March 23 that it would also enter the secondary market to purchase certain investment-grade bonds and exchange-traded

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here