LUKANYO MNYANDA: Central banks buying company bonds can lead to unintended consequences
European Central Bank bought Steinhoff bonds after it expanded its asset purchase programme to include corporate debt
31 May 2020 - 20:53
What if the Reserve Bank bought the bonds of Eskom, Edcon or any sickly company you can think of?
It’s not as crazy as it sounds, considering none other than the mighty European Central Bank (ECB) once found itself as a proud owner of bonds issued by Steinhoff. That company, if anyone needs reminding, is now best known for perpetrating SA’s biggest-yet corporate fraud...
BL Premium
This article is reserved for our subscribers.
A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.
Already subscribed? Simply sign in below.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now