In its attempt to reduce borrowing costs for companies, the Bank of England unintentionally created a two-tier bond market. "One unintended consequence of the Bank of England's asset-purchase facility is that it can make the strong stronger and the weak weaker," said Gary Jenkins, head of fixed income at Evolution. "The companies that could previously access liquidity via corporate-bond issuance are now able to do so at slightly tighter spread levels, whereas the great unwashed in the lower ratings categories have seen their borrowing costs rise, if they are able to borrow at all."

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