This study addresses the timing and the direct effect on corporate financing decisions of corporate bond purchases operated under the European Corporate Sector Purchase Program (CSPP). Consistent with the goal of reducing credit premia, more timely purchases are observed for eligible bonds...

Climate change and the transition to a low-carbon economy to mitigate it engender significant economic costs. These costs are ultimately borne by households and firms, affecting their cash flows and wealth, which are key determinants of their credit worthiness. Climate-related costs are thus a...

This paper evaluates the macroeconomic effects of the corporate sector purchase programme (CSPP) implemented in the euro area by the Eurosystem. For this purpose we calibrate and simulate a monetary-union dynamic general equilibrium model. We assume that entrepreneurs can finance their spending...

The green bond market has grown strongly in recent years, especially in the euro area. With regard to the European Union’s climate targets, it is likely that the demand for green bonds-bonds that specifically support sustainable projects-will continue to increase in the future. The European...

This article documents the difference in corporate bond issuance between the euro area (EA) and the United States (US) in 2020, especially in the high-yield (HY) segment, and discusses the role that the monetary policy measures undertaken by the US Federal Reserve (Fed) and the ECB in response...

The rise of bond financing in EuropeUsing large panel data of public and private firms, this paper dissects the growth of bond financing in the Euro Area through the lens of the cross-section of issuers. In recent years, the composition of bond issuers has shifted, with the entry of many smaller...

This report explores the interactions between nature-related financial risks and monetary policy, focusing on the ECB’s corporate asset purchase operations (also described as corporate ‘quantitative easing’ or ‘QE’). Using the ENCORE framework, we find that the sectors the ECB is...