Coronavirus Credit Crunch: One Place to Find Soaring Yields Right Now
The coronavirus pandemic has had a dramatic impact on everyone's daily lives, and the financial ramifications are enormous. Initially seen as simply a temporary disruption, the COVID-19 outbreak has led to widespread closures of businesses and schools along with government orders to stay inside whenever possible. That's putting immense pressure on the global economy and the financial system, and what used to be smooth-functioning markets are exhibiting signs of the stress.
Amid fears about the crisis, the Federal Reserve has done what it can with supportive monetary policy, reducing its short-term rates to near zero. Rates on high-quality short-term debt have also fallen precipitously, along with bank CDs and savings accounts. Yet one typically quiet part of the market has seen rates soar -- and it could be a big opportunity for those looking for income.
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Source Fool.com
