FYI: The Bank of Japan said Thursday it may introduce a lending facility for its exchange traded fund buying program that would allow it to temporarily lend ETFs to market participants.
The one-sentence line on the last page of its latest statement on monetary policy left some traders puzzled, while others speculated on whether this could be a way to allay concerns surrounding liquidity.
"The BOJ's share in the ETF market has been considerably in increasing, so the BOJ would want to show the central bank is dealing with it somehow with this ETF lending facility," said Yoshinori Shigemi, a global market strategist for JPMorgan Asset Management Japan in Tokyo. "With this step, the BOJ would be appealing that it would provide liquidity to the market."
Regards,
Ted
https://www.investors.com/etfs-and-funds/etfs/throwaway-boj-line-left-traders-puzzled-on-etf-plans/
