Viability of debt issuance could be hit as QE ends – Bank of Canada paper
QE played important role in funding treasury debt issuance, researchers say
The end of quantitative easing (QE) could have an important impact on the viability of government debt issuance, a new working paper from the Bank of Canada warns.
In Following the Money: Evidence for the Portfolio Balance Channel of Quantitative Easing, Itay Goldstein, Jonathan Witmer and Jing Yang study the portfolio balance effects of QE in the US by “following the money” – examining the quantity of individual securities held by mutual funds.
The paper finds that, contrary to conventional
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