Purchases of corporate bonds

To mitigate the effects of the coronavirus pandemic on the Swedish economy, the Riksbank intends to purchase assets in an amount of up to SEK 700 billion, up to 31 December 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 will include medium and long-term securities issued by non-financial corporations – corporate bonds.

The purchases cover corporate bonds issued in Swedish krona by Swedish non-financial corporations with a credit rating equivalent to Baa3/BBB– or higher, with a remaining time to maturity of up to 5 years. The purchases will be made on the secondary market from the Riksbank's monetary policy counterparties.

Sveriges Riksbank applies an issuer limit, which means that the Riksbank shall not, at each time of purchase, own more than 50 per cent of an individual issuer’s total outstanding volume of corporate bonds in Swedish krona or more than 50 per cent of an individual bond issue. By purchasing corporate bonds, the Riksbank can establish a presence on the market for these securities and thereby ensure a good capacity to rapidly extend the scope of the purchases if monetary policy needed to be made more expansionary.

With effect from January 2021, the Riksbank shall only offer to purchase bonds issued by companies deemed to comply with international standards and norms for sustainability,

The purchases of corporate bonds were initiated in the week beginning 14 September 2020.

More detailed information on the corporate bond purchases can be found under “Related content” below.

Corporate bonds the Riksbank has purchased

List of Companies with bonds that meet the Riksbank’s criteria

Holdings of corporate bonds

Below is a list of the Riksbank's total holdings of corporate bonds and information on the allocation of the holdings into sectors and average time to maturity. The holdings are the net sum of purchased corporate bonds, which is to say the total sum of bonds purchased, minus bonds that have fallen due at that point in time. The data is reported in nominal terms and based on the transaction date for the Riksbank's purchases of the bonds.

Holdings of corporate bonds

Figure: Holdings of corporate bonds

The chart shows the Riksbank’s total holdings of corporate bonds as a total amount in SEK billions. Download the data from the chart by clicking on the arrow to the right, above the chart. Source: Sveriges Riksbank.

Change in holdings of corporate bonds
  SEK billions
Holdings per 28 February 2021 5,5
New purchases in March 2021 1,5
Maturing volume in March 2021 0
Holdings per 31 March 2021 7

 

Sector allocation

Figure: Sector allocation

The chart shows how the Riksbank’s holdings of corporate bonds (blue column) are allocated between the sectors energy, property, manufacturing and construction, and services as of 31 March 2021. It also shows the corresponding allocation for the corporate bonds that the Riksbank can purchase (red column). Download the data from the chart by clicking on the arrow to the right, above the chart. Source: Sveriges Riksbank.

Remaining time to maturity

The average remaining time to maturity (the time that remains before the corporate bond falls due) for the Riksbank's holdings of corporate bonds is 2.2 years as of 31 March 2021. The corresponding data for the corporate bonds the Riksbank can purchase is 2.3 years.

Figure: Remaining time to maturity

The chart shows how the Riksbank’s holdings of corporate bonds (blue column) are allocated into five different maturities: 0-1 year, 1-2 years, 2-3 years, 3-4 years, and 4-5 years as of 31 March 2021. It also shows the corresponding allocation for the corporate bonds that the Riksbank can purchase (red column). Download the data from the chart by clicking on the arrow to the right, above the chart. Source: Sveriges Riksbank.

Purchases of corporate bonds

Below is a list of the Riksbank’s total purchases of corporate bonds. Up to 30 June 2021, the Riksbank is offering to purchase corporate bonds issued in Swedish krona by Swedish non-financial corporations to a nominal amount of SEK 10 billion. The data is reported in nominal terms and based on the transaction date for the Riksbank's purchases of the bonds.

Purchases of corporate bonds

Figure: Purchases of corporate bonds

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

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Updated 12/04/2021