Inclusion of £10 billion worth of corporate bonds in Bank of England's (BoE) comprehensive package of stimulus that also includes a 25 basis points rate cut, £60 billion increase in asset purchases, and £100 billion worth of targeted funding scheme (TFS) has led to a massive rally in the UK corporate bond market. Corporates are experiencing a dramatic drop in the cost of funding.

Despite the Bank of England's (BoE) utmost determination the bank really can't influence whether the money moves to the real economy by an increase in investments or stays in the financial market in the hunt for yield via an increase in the CEO's pay package.

Chart courtesy - Bloomberg markets, soberlook.com