In the latest Bloomberg Opinion article from John Authers, Longview Economics shows how easing from the Fed is affecting the credit market...
... As London’s Longview Economics points out, the money from the Fed is also, critically, having an impact on credit conditions. The last three months have seen a significant tightening in the spreads at which very low quality CCC-rated debt trades, compared to Treasury bonds. This implies a long-term risk of continued malinvestment caused by the survival of “zombie” companies, but it also implies that the Fed’s money is finding its way into the economic bloodstream...
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