Fed moves to ensure companies
can tap bond market for funds
WASHINGTON — The Federal Reserve said Monday that it will begin purchasing corporate bonds as part of a previously announced plan to ensure companies can borrow through the bond market during the pandemic.
The program will purchase existing bonds on the open market, as opposed to newly issued debt. The central bank said will seek to build a “broad and diversified” portfolio that will mimic a bond-market index. The bonds will have to be from highly rated, investment-grade companies, or ones that fit that description before the viral outbreak struck.
The announcement boosted the stock market, which was already rebounding from early losses. The S&P 500 index rose 0.8% Monday.
The Fed’s purchases should hold down corporate bond yields, making it cheaper for companies to borrow. But by also lowering the return from investing in those bonds, the Fed’s actions will likely encourage investors to shift money from corporate bonds to stocks in hopes of achieving a higher return.
When the Fed announced its bond-purchase program in March, few companies were able to issue bonds. Banks and other large investors were dumping assets in favor of cash. New research has found that simply by announcing the program, the Fed was able to encourage more bond trading and improve the market’s efficiency.
Coronavirus death rate is higher
for those with chronic illnesses
Death rates are 12 times higher for coronavirus patients with chronic illnesses than for others who become infected, a new U.S. government report says.
The Centers for Disease Control and Prevention report released Monday highlights the dangers posed by heart disease, diabetes and lung ailments. These are the top three health problems found in COVID-19 patients, the report suggests.
The report is based on 1.3 million laboratory-confirmed coronavirus cases reported to the agency from January 22 through the end of May.
Information on health conditions was available for just 22% of the patients. It shows that 32% had heart-related disease, 30% had diabetes and 18% had chronic lung disease, which includes asthma and emphysema.
Among patients with a chronic illness, about 20% died compared with almost 2% of those who were otherwise healthy. Virus patients with a chronic condition were also six times more likely to be hospitalized — 46% versus almost 8%.
Feds to review cases into hanging deaths
LOS ANGELES — Federal authorities will review local investigations into the hanging deaths of two black men in Southern California to determine whether federal law was violated, officials said Monday.
Local authorities have said there is no evidence of foul play in the deaths of Robert Fuller in Palmdale and Malcolm Harsch in Victorville and early indications point both to suicide, but sheriffs have pledged to continue to investigate the cases.
Monday’s announcement follows weekend protests, which were prompted by the initial determination of suicide as the likely cause of death for Fuller.
People who participated in a town hall hosted by Los Angeles County Sheriff Alex Villanueva on Monday also voiced concerns that Fuller and Harsch may have been lynched.
