Financing your business in the time of COVID-19 has been saved
Financing your business in the time of COVID-19
The current economic circumstances brought about by the COVID-19 pandemic have introduced some new and immediate challenges for financing Australian businesses. Many businesses will be facing difficulties associated with cash flow management at a time when the financial markets are changing dramatically on a daily basis.
By way of example, in March we saw a doubling of spreads in the sub-investment grade US corporate debt market and spreads on investment grade and sub-investment grade went from about 200bps in early March to over 500bps in 2 weeks. B rated credits traded at over 8% by the end of March, up from 4% in early March and are continuing to widen in early April.