The Wall Street Journal: Bank of England’s bond-buying plan already paying off

Without having yet bought a single corporate bond, the Bank of England is already achieving its aim, simply by saying it plans to do so.

One of the goals of the bond-buying program is to “stimulate issuance in sterling corporate bond markets.” Immediately after the U.K. vote to leave the European Union, analysts soured on the outlook for issuance. Barclays PLC BARC, +2.12% cut its 2016 forecast from £35 billion ($46.04 billion) to £17.5 billion.

Read: Bank of England cuts rates, boosts easing to offset Brexit

But after the BOE went public with its plan, the spread on A-rated sterling corporate bonds narrowed to 1.38 percentage points, not only its lowest in a year but also lower than the spread for their dollar-denominated equivalents, according to Markit’s iBoxx index.

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