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...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.