Over the past month, there has been a flood of monetary and fiscal programs enacted and proposed globally. The focus has been on mitigating the damage to individuals and businesses (and supporting a faster recovery once economic factors and markets stabilize), while trying to facilitate some form of functioning capital markets. For example, in Europe, last week the ECB launched a 750 EUR ($830 bn) bond-buying quantitative easing (QE) program and the Bank of England (BOE) cut its rates by 15bps to 0.1% and increased its bond-buying QE program by 200B GBP ($240 bn). To date, the monetary easing has had limited to no success impacting market conditions, particularly in equities and non-sovereign debt.
This is the second in our series of weekly updates on the impact of Coronavirus. If you have missed the earlier update, please reach out to Info@LongfellowIM.com to receive back issues and to be added to the distribution list.