Unconventional monetary policy and corporate bond issuance

We assess the effect and timing of corporate arm ECB quantitative easing (CSPP) on bond issuance. Because several contemporaneous measures, to isolate programme effects we rely one key eligibility feature: euro denomination newly issued bonds. find that significant increase in bonds issuance by eligible firms is due CSPP this took at least six months unfold. This result holds even when comparing with similar ratings, thus providing evidence unconventional monetary policy can foster a financing diversification regardless firms’ risk profile. also highlight impact real economic activity. The suggests while all increased investment capital expenditures intangible assets, induced invest marketable equity securities, repurchase their own stocks, hold cash carry out short-term investment.