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Central banks will just buy them onto their balance sheets. Its already begun: https://ftalphaville.ft.com/2020/04/30/1588254981000/How-should-the-Fed-buy-junk
by phyalow 6y ago
Central banks will just buy them onto their balance sheets. Its already begun:
https://ftalphaville.ft.com/2020/04/30/1588254981000/How-should-the-Fed-buy-junk-bonds-/ https://ftalphaville.ft.com/2020/04/30/1588254981000/How-sho...
https://www.afr.com/markets/debt-markets/why-the-rba-is-lending-against-corporate-bonds-20200505-p54q2v https://www.afr.com/markets/debt-markets/why-the-rba-is-lend...
- nerbert 6y agoThis is really worrying. There is no central bank of central bank, so this really is the last lifeline. The system has been pushed to its limit.
- deleted 6y ago[deleted]
- zhte415 6y agoA central bank is the lender of last resort. Bank of International Settlements is the central bank of central banks. https://en.wikipedia.org/wiki/Bank_for_International_Settlements https://en.wikipedia.org/wiki/Bank_for_International_Settlem...