Dealer Inventory Constraints in the Corporate Bond Market during the COVID Crisis
Abstract: Beginning in late February 2020, market liquidity for corporate bonds dried up and corporate bond credit spreads soared amid broad financial market dislocations related to the COVID-19 pandemic. The causes of this liquidity dry-up and the spike in corporate bond spreads remain subjects of debate.
Part of Series: FEDS Notes
Publication Date: 2021-07-15