On April 9, the Federal Reserve (Fed) continued its unprecedented intervention in financial markets by expanding the size and scope of its announced facilities. The $2.3 trillion of support is directed towards support of fiscal programs, extension of existing special purpose vehicles to support the corporate and asset-backed securities markets, and backstopping the municipal debt market.
Important Risks: Investing involves risk, including the possible loss of principal. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.