The credit market, which seized up during the start of the coronavirus turmoil in the financial markets, is now one of the few things equity investors can take solace in as volatility returns.
As scary as the stock market’s wild ride has been, the distortion in the debt market was arguably more dangerous to the economy and the financial system that has relied on free-flowing credit for years. Now with the credit market stabilizing thanks to the Federal Reserve’s unprecedented backstop, many Wall Street analysts believe all will be well in other corners of the financial world.
