Following significant market volatility, central banks worldwide have stepped up their intervention and helped to stabilise the public credit markets.
- The Bank of England and US Federal Reserve have both recently stepped up the support they are providing to their economies, expanding their balance sheets by buying corporate bonds
- The benefit of this official intervention is also being felt by the non-investment grade, or high yield sector
- Investors should be prepared for many alternative new realities once Covid-19 passes, as identifying how social habits or economic
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.