-
U.S. Credit Markets Interconnectedness and the Effects of the COVID-19 Economic Shock
This staff report focuses on the interconnections among the various U.S. credit markets, including how the actions of issuers, intermediaries, and holders of credit in one market can affect other markets and the financial system more generally. The analysis seeks to identify the extent to which these interconnections contributed to or mitigated risk, including systemic risk, during the recent period of market stress during and following the COVID-19 global economic shock of March 2020. The financial system is complex, with layers of interconnections, participants, and risk transmission nodes among debt, equity, and ... (full story)