(Bloomberg) — Credit risk eased dramatically now that the Federal Reserve’s unprecedented effort to save corporate debt just got even bigger, adding a backstop to what could be hundreds of billions of dollars worth of bonds that are expected to fall to junk.The central bank will expand its bond-buying program to include debt that was investment-grade rated as of March 22 but was later downgraded to no lower than BB-, or three levels into high yield, according to a statement Thursday. It’ll also buy exchange-traded funds that track speculative-grade debt, which surged the most in a decade following the announcement. …read more
Source:: Yahoo Finance
