BlueBay's Riley: Federal Reserve intervention is enough to keep credit markets open

"It speaks to the credibility of the Fed that so long as they have a tool in place and they have a stated aim, that it is powerful enough to ensure the capital and credit markets remained open during the crisis," he explained. "The Fed actually spent hardly any money under the credit facilities it set up." The fallen angel opportunity as previously strong credits suffer Severe restraints on access to credit, particularly for the "riskiest companies", is a typical expectation of a recession and credit downturn. But Riley noted on this occasion, the US high yield market instead sa...