Managing the Liquidity Crisis

The coronavirus pandemic has left the corporate sector scrambling for cash. So far, a relatively robust financial system has been able to provide short-term funding, primarily through the revolving lines of bank credit available to most firms. According to JPMorgan, as of the end of March, nearly $208 billion (77% of the funds available in the facilities) had been borrowed by large companies through revolver drawdowns, of which borrowings by below investment grade firms accounted for about half.