RT Journal Article SR Electronic T1 Diminishing Returns of QE from Portfolio Rebalancing JF The Journal of Investing FD Institutional Investor Journals SP 106 OP 111 DO 10.3905/joi.2018.27.4.106 VO 27 IS 4 A1 Jan Willem van den End YR 2018 UL https://pm-research.com/content/27/4/106.abstract AB The author shows in a CAPM framework that asset risk can be a serious impediment for the portfolio rebalancing channel of quantitative easing (QE). Investors are less willing to take higher risk when excess returns decline due to asset purchases by the central bank. The reduced effectiveness of QE holds in particular when credit spreads are compressed. This can explain why QE has diminishing returns.TOPICS: Portfolio theory, financial crises and financial market history, performance measurement