Andrea Zaghini, 30 January 2020

In June 2016, the ECB launched its corporate sector purchase programme, through which it purchased corporate bonds in an effort to improve the financing conditions of euro area firms. This column argues that the programme was successful. In particular, by increasing prices and reducing yields in the targeted bond market segment, it encouraged investors to shift their investments towards similar but somewhat riskier bonds. This reduced borrowing costs for many firms, including those whose bonds were not eligible for direct purchase by the ECB. 

Events

CEPR Policy Research