Purchases of commercial paper

To mitigate the effects of the corona pandemic on the Swedish economy, the Riksbank intends to purchase securities in an amount of up to SEK 500 billion, until 30 June 2021, in addition to the purchases planned prior to the pandemic. The purchases are aimed at keeping interest rates in general at a low level and contributing to an efficient supply of credit. The current purchases include short-term securities issued by non-financial corporations – commercial paper.

The commercial paper purchases include certificates issued in SEK by Swedish non-financial companies with credit ratings equivalent to Baa3/BBB- or higher and that have a remaining maturity of up to six months. The purchases are made on the secondary market. The Riksbank’s monetary policy counterparties can participate in these auctions. Sveriges Riksbank applies an issuer limit that involves the Riksbank not owning more than 70 per cent of an individual issuer's total outstanding volume of commercial paper in SEK.

The first purchase of commercial paper was made on 2 April 2020.

More detailed information on the purchases of commercial paper can be found in the document under “Related content” below. 

Holdings of commercial paper

Here, we present the Riksbank’s total holdings of commercial paper. The holdings are the net total of commercial paper purchased, that is the total sum of commercial paper, minus paper that has matured at that point in time. The total holdings of commercial paper may not exceed SEK 32 billion

Figure: Holdings of commercial paper

The diagram shows the Riksbank’s total holdings of commercial paper. The figures are stated in SEK billions. Source: Sveriges Riksbank.

Change in holdings of commercial paper
  SEK billions
Outstanding volume 31 August 2020 2,6
New purchases in September 2020 0
Maturing volume in September 2020 -1,2
Outstanding volume 30 September 2020 1,4

 

Purchases of commercial paper

Here we present the Riksbank’s total purchases of commercial paper.

Figure: Purchases of commercial paper

The diagram shows, at each respective point in time, the Riksbank's total purchases of commercial paper since the measure was initiated in April 2020. The figures are stated in SEK billions. Source: Sveriges Riksbank.

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Updated 19/10/2020