Economic and Market Outlook

Since the March low, stocks have rallied, market volatility has moderated, spreads have tightened from their highs, and the yield curve has steepened modestly (long rates have increased slightly while the short end of the curve has remained well anchored). There’s abundant liquidity in the markets as evidenced by surging convertible bond and corporate bond issuance. Many businesses have devised innovative solutions to adapt in this unprecedented period, and companies are accessing the capital markets in a bid to ensure they have adequate liquidity to weather the current crisis.