Alpinum Investment Management AG

Alpinum News Flash - Fed installs Backstop

Middle of June the Fed announced that it is going to buy single corporate bonds to ensure a functioning secondary corporate bond market, which is a historical move and a positive sign for a market that was close to collapsing in March this year, when liquidity disappeared just in a matter of days.
Extraordinary times require extraordinary action and central banks’ influence has reached extreme levels. There are no limits to the measures taken to respond to the Covid-19 pandemic starting with ultra-low interest rates and all kinds of different asset purchase programmes. Central banks had no other choice in order to prevent an economic collapse.
Read more about this current topic and other interesting aspects in our latest Credit Update
Get our News Flash Credit Update