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The Impact of the Corporate Credit Facilities

Author

Listed:
  • Nina Boyarchenko
  • Anna Kovner
  • Or Shachar

Abstract

American companies have raised almost $1 trillion in the U.S. corporate bond market since March. If companies had been unable to refinance those bonds, their inability to repay may have led to an immediate default on all of their obligations, creating a cascade of defaults and layoffs. Based on Compustat data, an inability to access public bond markets could have affected companies employing more than 16 million people. In this post, we document the impact of the Primary Market and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) on bond market functioning, summarizing a detailed evaluation described in a new working paper. We also describe the impact that a collapse of corporate bond markets could have had on employment and investment.

Suggested Citation

  • Nina Boyarchenko & Anna Kovner & Or Shachar, 2020. "The Impact of the Corporate Credit Facilities," Liberty Street Economics 20201001, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednls:88817
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    More about this item

    Keywords

    facilities; corporate bonds; COVID-19;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G1 - Financial Economics - - General Financial Markets

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