Résumé
The paper quantifies the effects of the Eurosystem's purchases of corporate bonds issued by non-bank corporations established in the euro area on their spreads at issuance over the risk-free interest rate. To this end, a new econometric methodology has been developed, which allows us to evaluate the potential reduction in funding costs for the companies benefiting from the programme, following its announcement in March 2016.
A descriptive analysis reveals a significant reduction in the spreads at issuance of the bonds issued after the announcement of the programme. Our estimates suggest that the programme led to a decrease in the spreads at issurance of approximately 50 basis points for the bonds around the eligibility threshold (investment grade).
A descriptive analysis reveals a significant reduction in the spreads at issuance of the bonds issued after the announcement of the programme. Our estimates suggest that the programme led to a decrease in the spreads at issurance of approximately 50 basis points for the bonds around the eligibility threshold (investment grade).
langue originale | Anglais |
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Éditeur | Banca d'Italia |
Nombre de pages | 43 |
état | Publié - 1 mars 2019 |
Série de publications
Nom | Temi di discussione |
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Editeur | Banca d'Italia |
Numéro | 1213 |
ISSN (imprimé) | 1594-7939 |
ISSN (Electronique) | 2281-3950 |