Faultlines that were exposed when coronavirus shook corporate bond markets must be addressed to prevent future disruptions to a key source of funding for companies worldwide, according to the top organisation representing securities regulators.
The International Organization of Securities Commissions is examining ways to improve the overall functioning and liquidity of corporate bond markets, particularly in stressed conditions.
Central banks were forced to slash interest rates and restart huge emergency bond-buying programmes in March 2020 as turmoil spread across financial markets globally when governments rushed to impose lockdown measures to counter the spread of coronavirus.