Bank of England urged to buy bank bonds if further QE implemented
Pension Corporation warns that second round of gilt purchases under quantitative easing would be detrimental to pension funds
The Bank of England (BoE) is being urged to buy bank corporate bonds instead of gilts in the event of a further round of quantitative easing (QE).
The call from London-based insurer Pension Corporation comes on the back of criticism from the insurer that the BoE failed to take into consideration the impact of its first round of QE on pension funds.
The Bank of England's own estimates suggest that the first round of QE lowered gilt yields by 100 basis points. Pension Corporation estimates that
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