U.S. Economic News
April 14, 2020
U.S. News
The Financial Times reports that junk-rated U.S. companies raised more than $2 billion in debt on Monday, indicating that recent Fed actions to prop up the high-yield market are succeeding. The Fed’s decision to purchase exchange traded funds that buy high-yield debt sparked the largest rally in junk bonds in over ten years – a welcome development for lesser-known and lower-rated companies strapped for cash. FT
According to the Washington Post, a recent survey of local officials shows that over 2,100 U.S. cities – representing 93 million people nationwide – are anticipating major budget shortfalls this year due to the coronavirus pandemic. The $2 trillion dollar rescue package passed in March provides some funding to help local governments with responding to the pandemic, but the funds cannot be used to close the general revenue gaps caused by the sudden economic downturn. WaPo