Purchases of corporate bonds

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, up to 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 medium- and long-term securities issued by non-financial corporations – corporate bonds.

The purchases entail corporate bonds issued in SEK by Swedish non-financial companies with a credit rating equivalent to Baa3/BBB– or higher, with a remaining time to maturity of up to 5 years. The purchases are made on the secondary market from the Riksbank's monetary policy counterparties. Sveriges Riksbank applies an issuer limit that involves the Riksbank, at each time of purchase, not owning more than 50 per cent of an individual issuer's total outstanding volume of corporate bonds in SEK 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.

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.

Purchases of corporate bonds

Here we present the Riksbank’s total purchases of corporate bonds. Until 30 June 2021, the Riksbank is offering to purchase corporate bonds issued in Swedish kronor by Swedish non-financial corporations to a nominal amount of SEK 10 billion.

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.

Holdings of corporate bonds

The total volume of the Riksbank’s corporate bond holdings and information on the sector breakdown and average remaining maturity of the holdings will be reported quarterly, starting at year-end 2020. The information will be published at the beginning of January 2021.

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Updated 28/09/2020