Bank of England Asset Purchase Facility – Corporate Bond Purchase Scheme

On Tue 13th Sept 2016, The Bank of England announced what Bonds it was willing to buy from the market as part of its Asset Purchase Facility.

http://www.bankofengland.co.uk/markets/Pages/apf/corporatebondpurchases/default.aspx

The XLS with all the names of the debt instruments it is willing to buy is here:-

http://www.bankofengland.co.uk/markets/documents/cbeligiblesecurities.xls

271 Bonds of a total debt outstanding worth £110,012 million is what makes up this list. It will be interesting to see which institutions who currently own these bonds are willing to sell them to The Bank of England.

They are all famous names what are clearly high quality debtors.

To name a selected few of bonds that The Bank of England is will to buy:-

BRITISH TELECOM PLC (the  world’s most dynamic telecommunications and media corporation)
APPLE INC
ASTRAZENECA PLC
AT&T INC
DEUTSCHE TELEKOM INT FIN
GLAXOSMITHKLINE CAPITAL
NATIONAL GRID GAS PLC
ROLLS-ROYCE PLC
TOYOTA MOTOR CREDIT CORP
TRANSPORT FOR LONDON
VERIZON COMMUNICATIONS
VODAFONE GROUP PLC
WAL-MART STORES INC

So if The Bank of England buys any of these bonds, it then becomes a creditor to these institutions.

Leave a Reply

Your email address will not be published. Required fields are marked *