BoE called upon to clarify corporate bond scheme

Managers urgently request more details of Bank's corporate bond buying scheme following governor's unorthodox plans to buy up to £50bn in debt

Fund managers have called on the Bank of England to urgently provide more details of its corporate bond buying scheme after last week's announcement failed to bring any initial relief to ever-widening spreads. BoE governor Mervyn King last week outlined an unconventional plan to buy up to £50bn in corporate debt in a bid to boost liquidity in credit markets and reduce the spread of yields over government bonds. The spread on all investment grade corporate bonds over gilts were at 383.3 basis points before King's statement last Tuesday, but increased further to 387.7bps at close on Thurs...