Corporate Bond Purchase Scheme and Negative pledge: Difference between pages

Latest revision as of 15:28, 8 July 2021

A term used in loan documentation.

It is a promise not to create a class of creditor that ranks above the lender in priority for repayment.

Usually this means that, for an unsecured loan, the borrower promises not to grant security to another, subsequent lender.

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-''Bank of England''
+A term used in loan documentation.
-(CBPS).
+It is a promise not to create a class of creditor that ranks above the lender in priority for repayment.
+Usually this means that, for an unsecured loan, the borrower promises not to grant security to another, subsequent lender.
-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 ==
+* [[Covenant]]
+* [[Carve-out]]
+* [[Grant]]
+* [[Pari passu]]
+* [[Pari passu clause]]
+* [[Security]]
-== See also ==
+[[Category:Long_term_funding]]
-* [[Asset Purchase Facility]]
+[[Category:Manage_risks]]
-* [[BEAPFF]]
+[[Category:Risk_frameworks]]
-* [[Bond]]
+[[Category:Treasury_operations_infrastructure]]
-* [[Issuance]]
-* [[Yield]]