The central bank said its program to support money market mutual funds will also serve as a backstop for state and local governments.
The credit watch involves single-borrower securitizations of commercial mortgages for high-priced resorts in Florida and Hawaii.
A coalition of healthcare industry organizations is asking for $100 billion in direct federal help, warning that the survival of some hospitals is at stake.
A memo circulated Wednesday by House Financial Service Committee Chairwoman Maxine Waters, D-Calif., suggests that the next wave of federal legislation authorize the Fed to support state, territory, and local debt issuance in response to the coronavirus outbreak.
Schools in 39 states had closed by Wednesday.
While collapsing market prices do not present immediate worries for CLO managers, the prospect of future downgrades and defaults becomes more problematic.
Local issuers in Texas also received authority to postpone bond measure elections that are slated for May.
GLWA has the flexibility to come to market as early as this week, but is monitoring the market in light of the COVID-19 impact.
The mall and entertainment venue shut its doors to combat the spread of the novel coronavirus, five months after its partial opening.
“Anybody who’s having an event between now and May is considering what to do about it,” said Mike Nicholas, CEO of the Bond Dealers of America.