1. Market Assessment of COVID-19.
- Author
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Kwan, Simon H. and Mertens, Thomas M.
- Subjects
- *
COVID-19 , *FINANCIAL leverage , *CREDIT derivatives , *BANKRUPTCY , *REAL property - Abstract
News about the COVID-19 public health crisis has affected asset prices to varying degrees across sectors of the U.S. economy. Stocks in the utilities, real estate, and energy sectors initially suffered the worst sector-specific shocks, while the information technology, healthcare, and telecommunications sectors fared relatively better. Businesses with higher financial leverage saw larger declines in their valuations. A simultaneous repricing of credit derivatives suggests concerns about insolvency contributed to the valuation declines. Although some stocks are recovering from the initial lows, significant differences across sectors remain. [ABSTRACT FROM AUTHOR]
- Published
- 2020