Purchases of corporate securities

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. These purchases will include inter alia securities issued by non-financial corporations – commercial paper and corporate bonds.

The commercial paper purchases include certificates issued by 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 not owning more than 70 per cent of an individual issuer's total outstanding volume of commercial paper in SEK.

This is a new measure, and the first purchase of commercial paper was made on 2 April 2020.

The Riksbank has decided to offer to purchase corporate bonds in a nominal amount of SEK 10 billion during the period 1 September 2020 to 30 June 2021. This is a new measure and the intention is that the purchases will be initiated in September 2020. The purchases shall entail corporate bonds issued by companies with a credit rating equivalent to Baa3/BBB– or higher, with a remaining time to maturity of up to 5 years. They are expected to be made on the secondary market and from the Riksbank's monetary policy counterparties. By initiating purchases of corporate bonds in this way, 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 going forward.

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

Holdings of commercial paper

Here we present the Riksbank's total holdings of commercial paper. The total holdings of commercial paper may not exceed SEK 32 billion. The holdings are the net total of commercial paper purchased, which is to say the total sum of commercial paper purchased minus commercial papers that have fallen due at the point in time. 

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 30 June 2020 5,3
New purchases in July 2020 0,2
Maturing volume in July 2020 -1,6
Outstanding volume 31 July 2020 3,9

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 03/08/2020