Bank of England QE Purchase Program is Well Ahead of Schedule; Corporate Bond Buying Bonanza Underway

After the BREXIT vote was announced, the BOE announced a QE program for the ages, which entailed £10b in dengerate corporate bond purchases — for the explicit purpose to lower yields, also known as manipulation.

As of today, the bank is well ahead of their 18mo schedule, reporting corporate bond ownership of more than £1b — significantly higher than the £300m that was expected.

“This is a big statement,” said Tomas Hirst, a London-based credit analyst at CreditSights. “Given that the expectation was that we’d be somewhere in the region of 300 million by now, it gives you an idea of how far ahead they’ve gone.”

The good news, naturally, is that London’s bankers have been very busy issuing new bonds to be purchased by the government. Third quarter sales were £11b.

Helicopter money, but for really rich folks.