Not knowing the details, the message is clear, the economy began to seize up sometime around the election. Last week, I showed you how the Fed is overlooking the message of the inverted yield curve and that despite a near tripling in crude oil, there is NO inflation. The yield curve is an indicator of how investment funds are being diverted.
Secondary offerings can be private placements or public offerings of shares of stock for cash.
The bond market allows corporations to raise cash by offering bond investors a return of their money plus interest. Right now, stock prices have collapsed, and as such, many economically sensitive companies are unable to raise cash by selling their stock to the public, hence no economic investing. As far as the bond market is concerned, here's a chart that stunned me and it should to the members of the Federal Reserve. This is a chart of Credit Spreads . The highest quality borrower would be the U.S. Government.