A new Federal Reserve survey finds investors have a bigger appetite to fund a range of securities, an encouraging sign that credit conditions are improving.
The Fed, in its first such survey, released Tuesday, says demand has increased over the last three months for funding high-grade corporate bonds, stocks, residential mortgage-backed securities issued by Fannie Mae and Freddie Mac and other asset-backed securities.
During the height of 2008 financial crisis, panicked investors lost their appetite to lend against a variety of securities. That cut off the flow of credit to businesses and consumers and plunged the country deeper into recession.