Graduation Year


Date of Submission


Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Nishant Dass

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This paper examines the effect Covid-19 has on hard-hit industries and their suppliers. By looking at the widening of credit spreads on corporate bonds, a shield can be observed through the disproportionate way Covid affects hard-hit companies compared to their suppliers. The dataset looks specifically at three highly affected industries which are accommodation, air transportation, and full-service restaurants. This paper runs a linear regression that looks at the effect that being one of the main 3 frontline industries has on credit spreads of corporate bonds versus that from being a supplier of these industries. The regression highlights the effects that the specific events of Covid-19 and the Federal Reserve’s announcement to offer support have on these different industries as well. The paper concludes that the effect of Covid-19 in widening credit spreads is more associated with frontline industries as compared to their suppliers. This indicates that during policymaking, the disproportionate effect some industries see during a financial crisis caused by a pandemic or other similar event should be studied and considered when the Federal Reserve offers financial aid.