The Pandemic Could Become a Debt Crisis, Too

Concerns about the financial repercussions of the coronavirus crisis have largely faded since the first few hectic weeks. That’s a problem, because authorities should be doing much more to prepare for what could be a destabilizing wave of losses.

In the face of the pandemic, the Federal Reserve has done an excellent job of keeping financial markets functioning. It has pledged trillions of dollars to ensure that a broad range of institutions — including hedge funds, money-market mutual funds and securities dealers — can meet their immediate obligations. This has helped consumers and companies borrow the money they need to stay afloat.