ISM Associates: Bank of England To Purchase Apple Bonds

ISM Associates: The Bank of England has widened the scope of assets it can buy as part of its bond-buying program.
ISM Associates: The Bank of England has named tech giant, Apple as one of a number of companies whose assets qualify for inclusion on its new bond-buying program. The new program, unveiled by Governor Mark Carney at the central bank's second post-Brexit meeting in July, will see the Bank enter the secondary market for corporate debt for the first time.
The development is part of the Bank's stated aim of driving down borrowing costs and encouraging businesses to step up investment to help stave off what it sees as headwinds facing the British economy as a result of its vote to leave the European Union.
The Bank is the latest central bank to follow the Bank of Japan and the European Central Bank into the market for corporate debt after both found a shortage of government bonds to buy as part of their own programs.
Criticism has been leveled at Apple over widespread accusations that Apple avoids paying tax on its UK sales by routing them via Ireland and the company has recently been made the subject of a ruling by the European Commission which ordered it to pay some €13 billion in back taxes in Ireland.
"The Bank of England has faced a shortage of UK government bonds (gilts) which could result in its being unable to meet it bond-buying target," said James Preston, Chief Economist at ISM Associates. "Apple is about as safe as you can get in terms of corporate debt but the furor over its tax arrangements will continue to the subject of controversy for some time."