Companies are set to issue record debt for a 2nd straight month — and Bank of America says it's because the Fed 'solved' a looming credit crisisNew offerings totaled $22 billion on Monday, bringing the April sum to $229.7 billion and"within striking distance" of March's $261 billion record, the analysts wrote.
The borrowing activity was primarily fueled by the Fed's potent efforts to keep companies afloat amid the nationwide lockdown. Easing first took the form of interest rate cuts and liquidity injections before the central bank threw out its traditional playbook and created several targeted lending facilities.
The firm doesn't expect the trend to stop anytime soon. Credit drawdowns are set to increase as the primary market opens further, Bank of America wrote. Companies are also increasing the sizes of their credit lines, boosting the potential for bigger issuances down the road.
Solved you mean delayed for the benefit of the rich.
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