The objective of private sector asset purchases under the Asset Purchase Facility is to improve the liquidity in, and increase the flow of, corporate credit by making purchases of high-quality private sector assets including commercial paper and corporate bonds.
Through the Corporate Bond Secondary Market Scheme, the Bank will offer to make regular small purchases and sales of a wide range of high-quality corporate bonds. The focus of the Scheme is to facilitate secondary market activity, to help to reduce liquidity premia on high-quality corporate bonds, and so remove obstacles to corporate access to capital markets.
Corporate bond purchase operations usually take place on Thursdays and corporate bond sale operations on Fridays between 11.00am and 11.30am. Following the sale operation on 12 April 2013 the Fund no longer has holdings in securities eligible for sale. Sale operations were therefore placed on hold from 19 April 2013. Any further purchases of securities will continue to be made available for subsequent sale in auctions, subject to the criteria for eligibility for sale.
Market notices contain the operational details by which the Bank of England undertake the various facilities. They form part of the Legal Documentation.
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