Article: United States: Bank of England Plan Fails Firms Needing Credit Most.

Byline: sander03

The Bank of England s $70 billion plan to spur lending by purchasing corporate bonds is aiming at the wrong targets because it won t help borrowers that are shut out of debt markets, according to analysts.

Buying investment-grade, non-financial corporate debt in the secondary market helps out investment funds and bank trading desks, but not the companies that actually need liquidity, said Simon Surtees, who helps manage more than 18 billion pounds ($25 billion) at Gartmore Investment Ltd. in London. I can t honestly see what the Bank of England is trying to achieve.

Governor Mervyn King said in February he ll buy up to 50 ...

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