NEW YORK, June 24 (Reuters) - The Federal Reserve’s stimulus program can cover the collapse in corporate cash flows for the summer, but the economic risk posed by the coronavirus pandemic is likely to extend far beyond that, Bridgewater Co-Chief Investment Officer Bob Prince said at the Bloomberg Invest Global conference on Wednesday.
“The programs to date are by and large sufficient to cover the income gap for about three or four months starting from April. So we’re really talking about an amount of money that gets you through the summer. And the problem then is that we’re talking about the virus, which has a time frame of probably 18-24 months. So I refer to that as a duration mismatch,” he said. (Reporting by Kate Duguid; editing by Jonathan Oatis)