In the November 2020 statement issued by its Federal Open Market Committee, the Federal Reserve committed to use the full range of tools available to it to alleviate the economic hardship caused by the COVID-19 pandemic. To that end, the Federal Reserve indicated that it intends to keep the target range for the federal reserve rate between 0 and 0.25% to help achieve maximum employment in the labor market. [Federal Reserve; Nov. 5, 2020]
The Wall Street Journal reports that Furniture Factory Outlet LLC, a private-equity owned retailer of discounted home furnishings, filed for Chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware on November 5, 2020. The retailer and certain affiliates will reportedly sell substantially all of their assets to competitor American Freight. [WSJ; Nov. 5, 2020]
CNN Business reports that CBL Properties and Pennsylvania Real Estate Investment Trust, two major U.S. REIT mall owners, each filed for chapter 11 bankruptcy protection on Sunday, November 1, 2020. Some of their respective largest tenants include JC Penney, Tailored Brands, and Ascena Retail Group, all of which also filed for bankruptcy earlier this year. [CNN; Nov. 2, 2020]
Analysis by Bloomberg applying the Z-score method to commercial information available on various airlines addressed which airlines that have not yet restructured following the COVID-19 pandemic were likely to need to restructure as pandemic-related restrictions continue to impact air travel. Bloomberg found that air carriers in Africa, Latin America, and Asia were the most likely to restructure in the near term. [Bloomberg; Nov. 1, 2020]