Pimco's Amey on Bank of England's QE Program

The transcript discusses the challenges and dynamics of bond buying, focusing on the options available when a bond purchase fails. It explores the attractiveness of bonds, the regulatory environment, and the impact of quantitative easing (QE) on the market. The discussion includes the role of institutional investors and the Bank of England's strategies, highlighting the complexities of the bond market and the potential need for regulatory adjustments.

What were the two options available to address the bond purchase shortfall?

• Buy more bonds today or delay the purchase

• Reduce bond prices or increase supply

• Increase interest rates or delay the purchase

• Sell existing bonds or buy more today

Why might bonds be considered attractive despite low yields?

• They have high growth potential

• They are not regulated

• They provide a stable income stream

• They are easy to sell in the market

What prevents large insurance and pension funds from selling bonds?

• High transaction costs

• Regulatory requirements

• Lack of market demand

• Low bond prices

How does quantitative easing affect bond yields?

• It increases bond yields

• It decreases bond yields

• It stabilizes bond yields

• It has no effect on bond yields

Why is the Bank of England reluctant to purchase equities?

• Equities are too volatile

• It is outside their natural sphere

• Equities have low returns

• There is no regulatory approval