演講者簡介 : Professor Crosignani received his Ph.D. in Finance from New York University Stern School of Business in 2016. He is currently a senior economist in the Financial Intermediation Function at the Federal Reserve Bank of New York. His research interests are Financial Intermediation and Macroeconomics, Corporate Credit Markets, Macroprudential Regulation, Sovereign Debt Capacity, Cyber Risk.
演講摘要 : We document capital misallocation in the U.S. investment-grade (IG) corporate bond market, driven by quantitative easing (QE). Prospective fallen angels—risky firms just above the IG rating cutoff—enjoyed subsidized bond financing since 2009, especially when the scale of QE purchases peaked and from IG-focused investors that held more securities purchased in QE programs. The benefitting firms used this privilege to fund risky acquisitions and increase market share, exploiting the sluggish adjustment of credit ratings in downgrading after M&A and adversely affecting competitors' employment and investment. Eventually, these firms suffered more severe downgrades at the onset of the pandemic.
