Assignment # 2
How were these numbers in 2009 during the height of the 2008/2009 recession? Would you expect, in the Commercial Paper market, the Yield Curve (interest rate) for bonds in a recession to be high or low? During the previous recession of 2008 / 2009 the Commercial Paper market froze and the Federal Reserve intervened to inject cash into the market. How can we understand/think about it?
How about demand of junk bonds by investors in a recession period versus a strong economic growth period? How can we can understand/think about it?
Why commercial bank lending is important for a country’s economic health and GDP of a particular country?
What is the percentage of domestic credit to the private sector in the USA? Can you say if it is it increasing or decreasing since 2004 to 2019? What is an important reason for the fluctuation?
