Why do you think the window for raising debt is opening

Reference no: EM133494106

Assignment:

Read the Wall Street Journal (WSJ) Mar 2020 Article "20200318_Bond Market Cracks Open for Blue-Chip Companies-Then Slams Shut - WSJ. pdf about how both companies and investors are responding to the outbreak of the Covid-19 virus and its impact on the economy and financial markets. In particular, the importance of liquidity and pricing of risk can be drawn out in connection with the issuance trends and investor appetite referenced in this piece.

Discuss the following questions:

(1) According to the article, why are companies seeking to raise debt and/or draw down on their credit lines?

(2) What is the recommendation of former Federal Reserve heads Ben Bernanke and Janet Yellen and why do you think they are proposing this step?

(3) Why do you think the "window" for raising debt is opening and closing so rapidly in this environment?

Reference no: EM133494106

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