DiMartino Booth warns Fed pivot may not prevent financing stress spreading to viable firms

DiMartino Booth says the greatest danger is when financing stress spreads from already fragile borrowers to otherwise viable firms, and a Fed pivot would not necessarily prevent that. She notes that if Treasury yields fall 1 percentage point while credit spreads widen 3 points, affected borrowers still face a net 2-point bump in costs.

Detected & updated continuously · Source: Nebula