New Investment Findings from Federal Reserve Board Discussed (Market Effects of Central Bank Credit Markets Support Programs In Europea): Investment

2025 OCT 14 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators discuss new findings in Investment. According to news reporting out of Washington, District of Columbia, by NewsRx editors, research stated, “Using responses of credit default swap indices to European Central Bank (ECB) monetary policy announcements, we isolate a novel credit policy component of monetary policy surprises. We examine how such unconventional monetary policy surprises affect asset markets.”

Our news journalists obtained a quote from the research from Federal Reserve Board, “Easing credit surprises lead to a somewhat delayed decline in corporate-bond yields and cause declines in option-implied measures of uncertainty about credit risk. Easing credit surprises also boost equity markets.”

According to the news editors, the research concluded: “Both net and gross corporate-bond issuance increase as a result of easing credit surprises, with the largest response in investment grade issuance.”

This research has been peer-reviewed.

For more information on this research see: Market Effects of Central Bank Credit Markets Support Programs In Europea. Journal of Money, Credit and Banking, 2025. Journal of Money, Credit and Banking can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Money, Credit and Banking - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1538-4616)

Our news journalists report that additional information may be obtained by contacting Yuriy Kitsul, Federal Reserve Board, Washington, DC 20551, United States. Additional authors for this research include Oleg V. Sokolinskiy and Jonathan H. Wright.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/jmcb.13277. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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