TYBS - The Coronavirus 'Sudden Stop' Needs Credit Support
By Rob Waldner, Chief Strategist and Head of Macro Research, Invesco Fixed Income; John Greenwood, Chief Economist; and Matt Bubriski, Senior Analyst, Global Liquidity
Yesterday, Invesco Fixed Income reported on the historic actions taken by the US Federal Reserve to stabilize markets. Today, we want to take a step back and explain why those actions were deemed necessary, given the scope of the problems faced by the markets.
The US economy is currently experiencing a "sudden stop" in growth, as efforts to combat the spread of the coronavirus increase. Social distancing will likely