China's Central Bank Establishes Bond Swap Facility for Large Redemptions
Photo: TokenPost
The People's Bank of China (PBOC) has decided to establish a bond-market swap facility to address large redemptions at nonbank investment firms when stress threatens China's bond market. The Bond Market NBFI Swap Facility (BNSF) is intended for episodes in which asset managers face widespread liquidity strain and the bond market comes under systemic pressure. Its purpose is to help maintain bond-market stability during such episodes. Systemically significant bank wealth management subsidiaries and managers of publicly offered funds would be eligible, along with their parent banks or securities firms.
Source: TokenPost
