Financial Times FT.com

Old Lady to take on risk of default

By Chris Giles, Economics Editor

Published: January 19 2009 23:14 | Last updated: January 19 2009 23:14

A big new investor in corporate credit will enter the picture next month when the Bank of England gains the authority to purchase “high-quality” corporate assets in a bid to ease the financing strains of large companies.

The Treasury has initially authorised the Bank to purchase £50bn assets from February 2, financed by the issue of Treasury bills.

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