Central Banks will also have to further reduce risk premia for more fragile companies

Central banks have: Driven down risk-free interest rates; Lowered sovereign risk premia for riskier countries; Reduced the risk premia paid by solid (Investment Grade) companies ; But they have not sufficiently reduced the interest rates of more fragile companies, thereby creating problems for these companies, especially in the event of a downturn in activity. It is likely that central banks will also have to intervene to further reduce the risk premia paid by more fragile companies (High Yield, SMEs).