Difference between revisions of "Corporate Bond Purchase Scheme"

From ACT Wiki
Jump to: navigation, search
(Create the page. Source: Bank of England Market Notice 4 August 2016: http://www.bankofengland.co.uk/markets/Documents/marketnotice160804apfcbps.pdf)
 
(Update.)
Line 11: Line 11:
  
 
Bonds issued by banks, building societies and insurance companies are not eligible.
 
Bonds issued by banks, building societies and insurance companies are not eligible.
 +
 +
 +
The CBPS was launched in 2016, for an initial period of 18 months.
  
  

Revision as of 16:37, 11 December 2016

Bank of England

(CBPS).

A scheme for Bank of England to buy certain eligible corporate bonds under the Asset Purchase Facility.


The purposes of the CBPS include 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 include ones issued by non-financial businesses which make a 'material contribution to economic activity in the UK'.

Bonds issued by banks, building societies and insurance companies are not eligible.


The CBPS was launched in 2016, for an initial period of 18 months.


See also