Corporate Bond Purchase Scheme
Bank of England.
(CBPS).
A former scheme for the Bank of England to buy certain eligible corporate bonds under the Asset Purchase Facility.
The purposes of the CBPS included providing monetary stimulus by lowering the yields on corporate bonds, thereby reducing the cost of borrowing for companies; and by stimulating new issuance of corporate bonds.
Bonds eligible for the scheme included ones issued by non-financial businesses which made a 'material contribution to economic activity in the UK'.
Bonds issued by banks, building societies and insurance companies were not eligible.
The CBPS was launched in 2016 and subsequently unwound from 2022 to 2024, by a combination of selling longer-dated bonds and holding shorter-dated bonds to their maturity.
