In this study, we examine the impact of the European Central Bank’s (ECB) corporate sector purchase programme (CSPP) on euro area non-financial firms’ cost of borrowing and choice between bank and public debt. Using a large sample of corporate bonds and syndicated loans closed between 2000...

We examine the impact of the ECB’s asset purchase programmes on euro area non-financial firms’ cost of borrowing and choice between corporate bonds and syndicated loans. We find that the corporate sector purchase programme (CSPP) reduced corporate bond spreads, and that the ECB’s purchases...