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 would normally take place on Thursdays and corporate bond sale operations on Fridays between 11.00am and 11.30am. Following the corporate bond purchase operation on 27 June 2013, the Corporate Bond Secondary Market Scheme will remain in place but operations will depend on market demand. The Bank will review that in consultation with its counterparties in the Scheme. If counterparties wish to request an operation, they should contact the Bank at the earliest opportunity and no later than 10am on the day before an operation day.
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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Information for participants