 Bloomberg -- The Federal Reserve revitalized a credit rally that had appeared to be on shaky footing, encouraging a new slate of risky borrowers to tap the market.Energy exploration and production company Comstock Resources Inc. is selling 500 million of CCC rated bonds to repay its revolver, while auto parts manufacturer Dana Inc. borrowed for similar reasons. A subsidiary of Navios Maritime Holdings Inc. is sounding out investors for a 500 million secured bond that may yield around 10, according to people familiar with the matter. And PGE; Corp. is wrapping up a nearly 9 billion bond sale to help fund its exit from bankruptcy.Risk appetite was buoyant after the Fed said yesterday it would start buying individual corporate bonds, removing a certification process that was considered a major hurdle in its ability to do so. That opens up the Fed to an estimated 1.7 trillion worth of eligible corporate debt, versus a 256 billion universe of exchange-traded funds that the central bank has only dabbled in so far, according to Bank of America Corp. strategists led by Hans Mikkelsen.When you have someone who goes in in size and across the board, its very, very powerful, Mikkelsen said.While the Fed wont be able to buy todays offerings mentioned above, as well as other debt thats rated too low or otherwise doesnt meet its criteria, high-yield managers nonetheless are upping their bets. Chair Jerome Powell reiterated Tuesday the Fed will keep rates near zero until the economy gets back on track, which could be at least another five years away, according to Northern Trust Asset Management.The Fed will keep its foot on the pedal for a long time in support of credit markets, said Colin Robertson, the firms head of fixed income, who said hes adding exposure to junk debt.Credit risk, as measured by derivatives indexes, dropped the most on Monday since April 9, though it briefly crept up Tuesday morning with virus infections rising in Florida, Texas and China. Up until the Feds announcement, the cost to protect corporate debt against default had been rising in sync with a broader risk-off tone, as signs of a second wave fueled concern markets had gotten ahead of fundamentals.The reversal was swift: the investment-grade market in the U.S. saw a dozen deals today, while Europe had 16 in syndication. Both were empty yesterday.Yesterday showed that the Feds intent is not just to be a backstop, but to be an active participant in driving spreads back to pre-Covid levels, said Steve Kellner, head of corporate bonds at PGIM Fixed Income. This was a game changer.In a further sign of improving sentiment, Irish lender AIB Group Plc offered subordinated notes, one of the riskiest types of bank debt. BP Plc held global investor calls on Tuesday ahead of an issue across three currencies, after the oil major wrote off billions of dollars on the value of its business.U.S.Carrier Global was also in the investment-grade market. Lummus Technology priced its leveraged buyout transaction, and Radio Systems held a call for its LBO financing this morning.Ford Motor Credit Co. sold unsecured high-yield debt for general corporate purposesApollo and Angelo Gordons Ryan Mollett are renowned on Wall Street for finding creative ways to wring money from distressed companies at the expense of other lenders. But when it came to Serta Simmons Bedding, they got a taste of their own medicineFor deal updates, click here for the New Issue MonitorEuropeAround 13 billion euros equivalent will price in Europes primary market on Tuesday, with 16 issuers offering 20 tranches, after the years 15th zero-deals day on Monday. The cost of credit insurance for high-yield European corporate debt fell the most since May 2010.Sales for the week are unlikely to reach 30 billion euros, according to 64 of market participants in a Bloomberg News surveyWith central banks measures being as aggressive as they are it is tough, in investment grade at least, to be short of risk and directly oppose them, said Roger Webb, head of pan-European credit at Aberdeen Standard InvestmentsThe Bank of England is widely anticipated to focus on expanding its quantitative-easing program on ThursdayBankers in Sweden are positioning for a wave of debt deals from real estate issuers, as the industry tries to move out of increasingly costly borrowing arrangements.Sales of euro covered bonds, the safest form of bank debt, are headed for the slowest first half in at least five years as lenders snub the market in favor of ultra-cheap central bank loans.AsiaSpreads on Asia investment-grade dollar bonds fell about 5-15 basis points, according to traders, bringing a halt to a four day selloff.At least seven borrowers including China National Petroleum Corp. and Indonesia are looking to price notes Tuesday, as the pace of issuance in Asias primary market catches up after lagging behind other regionsAsia again stands out for offering attractive value and attractive pick-up to U.S. credit, said Paul Lukaszewski, head of corporate debt for Asia and Australia at Aberdeen Standard InvestmentsThe Bank of Japan left its main monetary policy settings untouched and revised the estimated size of its virus-response measures, while pledging to do more to help the pandemic-hit economy if neededFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2020 Bloomberg L.P. 