KBRA Releases Research – Coronavirus (COVID-19): The Fed Does Shock and Awe

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases a research report following the U.S. Federal Reserve’s historic weekend meeting on March 15. In this report, KBRA discusses the regulator’s decision to inject liquidity through repurchase agreements, expanded quantitative easing, and a rate cut to 0%, as well as by slashing the discount window borrowing rate to 25 basis points in response to the market turmoil stemming from the coronavirus disease (COVID-19).

The report also details the ramifications of a liquidity crunch for corporations and consumers as a result of business interruptions, and how the new Current Expected Credit Loss accounting rule may complicate the banking industry’s capability to fully provide the credit that they may need until the economy recovers from a likely recession this year.

To view the report, click here.

CONNECT WITH KBRA

Twitter
LinkedIn
YouTube

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Ethan M. Heisler, CFA, Senior Director
+1 (516) 359-0975
eheisler@kbra.com

Van Hesser, Chief Strategist
+1 (646) 731-2305
vhesser@kbra.com

Business Development Contact:

Kai Chan, Senior Director
+1 (646) 731-3335
kai@kbra.com

Contacts

Analytical Contacts:

Ethan M. Heisler, CFA, Senior Director
+1 (516) 359-0975
eheisler@kbra.com

Van Hesser, Chief Strategist
+1 (646) 731-2305
vhesser@kbra.com

Business Development Contact:

Kai Chan, Senior Director
+1 (646) 731-3335
kai@kbra.com