Quantitative easing, investment, and safe assets: the corporate-bond lending channel
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- dc.contributor.author Giambona, Erasmo
- dc.contributor.author Matta, Rafael
- dc.contributor.author Peydró, José-Luis
- dc.contributor.author Wang, Ye
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:27:01Z
- dc.date.available 2020-05-25T09:27:01Z
- dc.date.issued 2020-05-05
- dc.date.modified 2020-05-25T09:26:37Z
- dc.description.abstract We show that Quantitative Easing (QE) stimulates investment via a corporate-bond lending channel. Fedâ s large-scale asset purchases of MBS and treasuries through QE creates a vacuum of safe assets, prompting safer firms to invest more by issuing relatively "safe" bonds. Using micro-data around QE, we find that QE increases firm-level investment by 7.4 percentage points for firms with bond market access. This growth is financed with senior bonds. We find no evidence of higher shareholdersâ payouts associated to QE. The robust findings are consistent with a model in which reducing the supply of government debt lowers "safe" corporate bond yields, stimulating investment.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1722
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/44749
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1722
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword quantitative easing (qe)
- dc.subject.keyword corporate-bond lending channel
- dc.subject.keyword investment
- dc.subject.keyword safe assets
- dc.subject.keyword financing
- dc.subject.keyword Finance and Accounting
- dc.title Quantitative easing, investment, and safe assets: the corporate-bond lending channel
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper