Institutional Investors and the QE Portfolio Balance Channel

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

Research output: Contribution to journalArticlepeer-review

14 Citations (SciVal)
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The operation of the portfolio balance channel has been emphasized by monetary policy makers 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 towards 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 - 14 Aug 2017


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