Sweden’s QE to see green

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By Lewis McLellan
30 Nov 2020

The Riksbank, Sweden’s central bank, is adding a “negative screening” process to its purchases of corporate bonds under its quantitative easing programme, meaning it will no longer buy the bonds of the most polluting companies.

As of January 2021, the Riksbank shall “only offer to purchase bonds issued by companies deemed to comply with international standards and norms for sustainability”. It is the first central bank to implement such a process.

Exclusion from the purchase programme will likely widen the credit spreads of affected ...

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