Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index: 100,320.89 +423.94

Bank Of England - Asset Purchase Facility (APF): Corporate Bond Purchase Scheme Reinvestment Programme – Market Notice 1 August 2019

Date 01/08/2019

The Corporate Bond Purchase Scheme (CBPS or the Scheme), which was launched in August 2016, exists to impart monetary stimulus by lowering the yields on corporate bonds, thereby reducing the cost of borrowing for companies, by triggering portfolio rebalancing into riskier assets by sellers of assets and by stimulating new issuance of corporate bonds.

 

  • 1. However, given the amount of re-investable proceeds, it is expected that the Scheme’s holdings at the end of this reinvestment programme will not exactly match the published sector shares.

    2. These provide that on early redemption a cash payment is made to the bond holders that is the higher of the outstanding principal and the foregone interest and principal payments discounted at a rate equal to the redemption yield of a gilt of comparable maturity.