Europe & North America Coronavirus Impact Analysis

17 March 2020

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The rapid spread of coronavirus around the world, coupled with Saudi Arabia’s decision to increase the supply of oil, led to a market panic last week that sent prices of stocks, bonds and asset-backed securities plunging in Europe and North America. Instead of stabilizing markets, the US Federal Reserve’s emergency action on Sunday to cut interest rates to near zero and revive a USD 700bn quantitative easing program pushed stocks down over 10% on Monday as countries closed borders.
Companies, investors and advisors confront widening yield spreads on debt, heightened volatility in equity markets and great uncertainty over the severity of the pandemic. Global GDP is expected to contract in the first quarter and some analysts are projecting what JPMorgan has called a “novel global recession” for the first half of the year. 
These macro themes are directly impacting markets that Acuris products cover from high-yield new issuance to middle market M&A and CLO formation.