Corporate bonds: Getting creative for cash
The five "Cs" - comfort, coupons, creativity, collateral and control - helped companies get deals done even during the Covid-19 outbreak
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CREDIT markets went through what can only be described as a bust-then-boom cycle as part of the Covid-19 outbreak. Extreme gridlock at the end of March 2020 when risk-off sentiments peaked gave way to an explosion of issuance across April, May and June and record volumes.
Yet at the same time, US bankruptcy filings hit their highest level since 2009 while US unemployment skyrocketed past 14 per cent at the end of April before retracing below 10 per cent by the end of July, the peak unemployment rate during the Global Financial Crisis.
What was helping these deals get done?
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