The Worst Unemployment Spike In U.S. History – 1 Out Of Every 4 Workers Has Filed For Unemployment Benefits In 2020

Even though most U.S. states have begun the process of “reopening” their economies, the unprecedented tsunami of job losses that we have been experiencing just continues to roll on.  On Thursday, we learned that another 2.4 million Americans filed initial claims for unemployment benefits during the previous week, and that brings the grand total for this pandemic to a whopping 38.6 million.

The Fed Is Now The Proud Owner Of Bankrupt Hertz Bonds

On March 23 - the day the S&P dropped to its cycle low of 2,237 -  the Fed stunned capital markets when it announced it would purchase investment-grade corporate bonds, traversing a Rubicon into a secondary market intervention that not even  Ben Bernanke had dared to cross. A few weeks later, on April 9, the Fed doubled down by announcing it would purchase not only junk bonds from "fallen angel" issuers (an announcement which came just days after a quarter in which a record $150BN in investment-grade bonds were downgraded to junk, starting the long-awaited tsunami of "fallen angels"), but would also buy junk bond ETFs such as HYG and JNK.