Abstract
The operation of the portfolio balance channel has been emphasized by monetary policymakers as a key channel through which quantitative easing (QE) policies work. We assess whether the investment behavior of insurance companies and pension funds in the United Kingdom during the global financial crisis was consistent with such an effect by analyzing both sectoral and institution‐level data. Our results suggest QE led to institutional investors shifting their portfolios away from government bonds toward corporate bonds but did not lead to a shift into equities.
| Original language | English |
|---|---|
| Pages (from-to) | 1225-1246 |
| Number of pages | 22 |
| Journal | Journal of Money, Credit and Banking |
| Volume | 49 |
| Issue number | 6 |
| Early online date | 14 Aug 2017 |
| DOIs | |
| Publication status | Published - Sept 2017 |
Research Groups and Themes
- AF Financial Markets
Keywords
- institutional investors
- asset allocation
- quantitative easing
- portfolio balance channel
- global financial crisis
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Dive into the research topics of 'Institutional Investors and the QE Portfolio Balance Channel'. Together they form a unique fingerprint.Profiles
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Professor Ian Tonks
- School of Accounting and Finance - Business School - Professor of Finance
Person: Academic