MSCI: Navigating Central Bank Intervention in Corporate Bond Markets

Since the 2008 financial crisis, major central banks have purchased $9 trillion of bonds in efforts to reinvigorate the global economy. Government guaranteed securities comprise 96% of these purchases. Several central banks have purchased corporate bonds; the European Central Bank (ECB) is the largest buyer of these bonds and remains an active purchaser.

With signs of rising inflation, the markets are increasingly focused on central banks potentially tapering purchases and ultimately