Institutional Investors and the QE Portfolio Balance Channel

Michael A.s. Joyce, Zhuoshi Liu, Ian Tonks

Research output: Contribution to journalArticle (Academic Journal)peer-review


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 languageEnglish
Pages (from-to)1225-1246
Number of pages22
JournalJournal of Money, Credit and Banking
Issue number6
Early online date14 Aug 2017
Publication statusPublished - Sep 2017

Structured keywords

  • AF Financial Markets


  • institutional investors
  • asset allocation
  • quantitative easing
  • portfolio balance channel
  • global financial crisis


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