The Fed clearly reacted to some troubling signs in the credit markets, and this action is a big deal because it is protecting against a further credit crisis in just about every area of credit.  This Fed move is a big deal and relieves some of the fear of issues in the credit markets and move back to the lows.  We continue to expect some pullback given the recent ramp, but the monetary and fiscal stimulus in this market is truly extraordinary and does help protect the downside against going all the way back to the March lows.


Fed to the rescue.  The Fed announced $2.3T in new lending programs to small and midsize businesses, US cities and states. In addition, the Fed expanded its corporate bond buying programs to include debt downgraded from investment grade to high yield after the coronavirus hit.  The extent of the Fed action shows just how significant this economic shutdown has become and the response that is needed.



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