Purchases of corporate bonds

To mitigate the effects of the coronavirus pandemic on the Swedish economy, the Riksbank increased its purchases of securities from September 2020 until 31 December 2021 with a total envelope of SEK 700 billion, in addition to the purchases planned prior to the pandemic. The purchases of corporate bonds were initiated in the week beginning 14 September 2020. The purpose of the purchases was to keep general interest rates low and facilitate credit supply. The Riksbank intends to decrease its purchases of securities with three quarters during the second half of 2022 compared to the purchases made during the first six months. The Riksbank’s assessment is that its holdings of securities should decrease during 2022. The current purchases include corporate bonds, among other securities.

The purchases, just like before, 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.

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

Here is a list of companies with outstanding 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 31 May 2022 12.2
New purchases in June 2022 0.4
Maturing volume in June 2022 -0.2
Holdings per 30 June 2022 12.4

 

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 the last weekday of the previous month. For comparison, the corresponding allocation is also shown for a portfolio that consists of all corporate bonds that the Riksbank has been able to buy since the purchases began in September 2020 and that have not yet matured (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 1,8 years as of the last weekday of the previous month. For comparison, the corresponding information is also shown for a portfolio consisting of all the corporate bonds that the Riksbank has been able to buy since the purchases began in September 2020 and which has not yet matured, and is 2 years.

Remaining time to maturity

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 of the last weekday the previous month. For comparison, the corresponding allocation is also shown for a portfolio that consists of all corporate bonds that the Riksbank has been able to buy since the purchases began in September 2020 and that have not yet matured (red column). Download the data from the chart by clicking on the arrow to the right, above the chart. Source: Sveriges Riksbank.

Credit rating allocation

Figure: Outstanding_Corporate_Bonds_Rating_EN.csv

The chart shows how the Riksbank’s holdings of corporate bonds (blue column) are allocated between the credit ratings AA, A, and BBB as of the last weekday the previous month. For comparison, the corresponding allocation is also shown for a portfolio that consists of all corporate bonds that the Riksbank has been able to buy since the purchases began in September 2020 and that have not yet matured (red column). Download the data from the chart by clicking on the arrow to the right, above the chart. Source: Sveriges Riksbank.

* The Riksbank does not normally sell bonds that no longer meet the Riksbank's formal criteria to remain purchasable, which mainly concerns bonds where the remaining maturity has been shorter than six months. To facilitate an evaluation of market neutrality in the Riksbank's purchases, the holdings of corporate bonds are regularly compared with a portfolio consisting of all the bonds that the Riksbank has been able to buy since the purchases began in September 2020 and which have not yet matured.

Purchases of corporate bonds

Below is a list of the Riksbank’s total purchases of corporate bonds. From September 2020 to 31 December 2021, the Riksbank bought corporate bonds for a nominal amount of SEK 500 million. During the second half of 2022, the Riksbank intends to continue to purchase bonds for a nominal amount of SEK 1 billion. As before, the purchases cover bonds issued in Swedish krona by Swedish non-financial corporations. 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.

Updated 01/07/2022