Uncertainty as to the actual effects that can be expected from the newly introduced BRRD instruments seems to have played a role. •  Fourth, negative feedback loops between equity and debt markets, amplified by low secondary market liquidity. B.
The multi-front policy response to the Covid-19 crisis has prevented the drying-up of liquidity and avoided an immediate credit crunch that could have led to a large wave of defaults, warding off a deflationary spiral with probable profound economic and financial stability consequences.