Did the financial crisis of 2007-2009 affect financial and nonfinancial firms to the same extent? The...

 

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Did the financial crisis of 2007-2009 affect financial and nonfinancial firms to the same extent? The figure below shows, starting in 2006, the (1) spread between the interest rates on three-month non-financial commercial paper (FRED code: CPN3M) and three-month Treasury bills (FRED code: TB3MS) and (2) spread between interest rates on three-month financial commercial paper (FRED code: CPF3M) and Treasury bills (FRED code: TB3MS). Compare the evolution of these two spreads (the shaded area represents the recession). FRED - 3-Month AA Nonfinancial Commercial Paper Rate-3-Month Treasury Bil: Secondary Market Rate - 3-Month AA Financial Commercial Paper Rate-3-Month Treasury Bil: Secondary Market Rate 3.0 2.5 2.0 * 1.5 1.0 0.5 0.0 2006 2008 2010 2012 2014 2016 fred. stiouisfed.org myf.red/g/6WDS Did the financial crisis of 2007-2009 affect financial and nonfinancial firms to the same extent? The figure below shows, starting in 2006, the (1) spread between the interest rates on three-month non-financial commercial paper (FRED code: CPN3M) and three-month Treasury bills (FRED code: TB3MS) and (2) spread between interest rates on three-month financial commercial paper (FRED code: CPF3M) and Treasury bills (FRED code: TB3MS). Compare the evolution of these two spreads (the shaded area represents the recession). FRED - 3-Month AA Nonfinancial Commercial Paper Rate-3-Month Treasury Bil: Secondary Market Rate - 3-Month AA Financial Commercial Paper Rate-3-Month Treasury Bil: Secondary Market Rate 3.0 2.5 2.0 * 1.5 1.0 0.5 0.0 2006 2008 2010 2012 2014 2016 fred. stiouisfed.org myf.red/g/6WDS

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The financial crises that happened between 20072009 gave indications of happening years earlier Both ... View the full answer