BOE Corporate Bond Buying Failed to Aid Firms, Staff Paper Finds

The Bank of England’s £20 billion ($27.3 billion) of corporate bond purchases failed to lower borrowing costs or boost bond issuance in the primary market, according to the central bank’s own research.

While yields for eligible bonds bought under quantitative easing fell by between 40 to 60 basis points when compared to ineligible debt, the BOE staff working paper admitted that it did little to aid firms’ borrowing or increase investment.