Professor Robert Wosnitzer discusses the recent Fed announcement indicating that it would buy individual corporate bonds, including companies deemed fallen angels since the start of the coronavirus pandemic
— June 26, 2020
Excerpt from Vanity Fair -- "Last week, the Fed announced that it would buy individual corporate bonds, including companies deemed fallen angels since the start of the pandemic, expanding its support for the riskiest branch of debt. Robert Wosnitzer, a professor of finance at New York University’s Stern School of Business, told me that the central bank’s announcement came after it had exhausted traditional tools like lowering interest rates. 'It’s kind of ludicrous to believe that these corporations—after 12 years of having relatively benign policies on the tax level, on the Federal Reserve level, on every single level—that they couldn’t withstand three to five months of hardship,' Wosnitzer said. “It’s insane to think about that. But that’s the world we’re living in.'"