Fed action fails to dampen spreads for riskier credits

Borrowing costs for some issuers are still two to three times the historical average

rates spread

The announcement of two major buying programmes by the Federal Reserve has so far failed to bring companies’ borrowing costs back down to earth, and some in the market worry the measures will be of limited help even once they are eventually launched.

On March 17, the Fed unveiled a plan to start buying three-month high-grade commercial paper (CP), followed by a statement on March 23 that it would also enter the secondary market to purchase certain investment-grade bonds and exchange-traded

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