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.date.accessioned 2020-05-13T16:01:32Z
- dc.date.available 2020-05-13T16:01:32Z
- dc.date.issued 2020-10-25
- dc.description.abstract We show that Quantitative Easing (QE) stimulates investment via a corporate-bond lending channel. Fed’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 shareholders’ 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 investmentca
- dc.format.mimetype application/pdf*
- dc.identifier.uri http://hdl.handle.net/10230/44535
- dc.language.iso engca
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1722en
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- dc.subject.keyword Quantitative Easing (QE)en
- dc.subject.keyword Corporate-bond lending channelen
- dc.subject.keyword Investmenten
- dc.subject.keyword Safe assetsen
- dc.subject.keyword Financingen
- dc.title Quantitative easing, investment, and safe assets : the corporate-bond lending channelca
- dc.type info:eu-repo/semantics/workingPaperca