Bank of England's Special Liquidity Scheme ends

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By:
Louise Bowman
Published on:

Goodbye SLS, hello APF.

The drawdown period for the Bank of England’s Special Liquidity Scheme (SLS) ended on January 30. The government has followed the initiative with the introduction of an Asset Purchase Facility (APF), which came into effect on February 2. Under the APF the Bank of England is authorized to purchase high-quality private sector assets, which includes paper issued under the credit guarantee scheme, corporate bonds, commercial paper, syndicated loans and some ABS created in "viable" securitization structures. The government will also create a new guarantee scheme for ABS that will involve full or partial guarantees being attached to triple-A rated mortgage, corporate and consumer debt.