Search Results
Corporate Bond Spreads and the Pandemic II: Heterogeneity across Sectors
The COVID-19 pandemic’s effects on firm borrowing costs have been heterogeneous, with some sectors being more affected than others.
How Many Employees Are Prepared to Work from Home?
Sorting workers by occupation and income helps shed light on who is more likely to be able to work remotely.
Corporate Bond Spreads and the Pandemic IV: Liquidity Buffers
The cost of borrowing rose for most firms during the pandemic-related disruption of financial markets, but firms with greater liquidity have had smaller increases in credit spreads.
Journal Article
What Is Driving Student Debt in the Eighth District?
Tuition appears to be a bigger driver of student debt growth in the Eighth District than in the U.S. as a whole.
Corporate Bond Spreads and the Pandemic III: Variance across Sectors and Firms
Corporate bond spreads widened when COVID-19 initially began spreading, then spreads stabilized. How have spreads fared across individual sectors and issuances from the same firm?
Corporate Bond Spreads and the Pandemic
How have the COVID-19 pandemic and subsequent monetary policy response affected the corporate bond market?
COVID-19, School Closings and Labor Market Impacts COVID-19, School Closings and Labor Market Impacts
With schools closed due to COVID-19, many full-time workers may drop out of the labor force to take care of their children. Which groups of workers might be most affected?
Credit Spreads during the Financial Crisis and COVID-19
Corporate bond credit spreads widened during both the financial crisis and COVID-19 pandemic. How did spreads respond to policy actions?
Working Paper
When Liquidity Matters: Firm Balance Sheets during Large Crises
We study how aggregate shocks shape the joint dynamics of credit spreads, debt, and liquid asset holdings for nonfinancial firms, focusing on the Great Financial Crisis (GFC) and COVID-19. Both episodes saw sharp credit spread increases and investment declines, but debt and liquidity fell during the GFC and rose during COVID-19. Cross-sectionally, leverage drove spreads and investment in the GFC, while liquidity dominated during COVID-19. We build a macro-finance model of firm capital structure with a liquidity motive for working capital. Calibrated to data, it attributes the GFC to real and ...
Working Paper
When Liquidity Matters: Firm Balance Sheets during Large Crises
We study how aggregate shocks shape the joint dynamics of credit spreads, debt, and liquid asset holdings for nonfinancial firms, focusing on the Great Financial Crisis (GFC) and COVID-19. Both episodes saw sharp credit spread increases and investment declines, but debt and liquidity fell during the GFC and rose during COVID-19. Cross-sectionally, leverage drove spreads and investment in the GFC, while liquidity dominated during COVID-19. We build a macro-finance model of firm capital structure with a liquidity motive for working capital. Calibrated to data, it attributes the GFC to real and ...