ECB struggles to sell new buying programme
Covered bond bankers disagree over the likely impact of the €40bn buying programme that the ECB begins next month. Only two-thirds the size of the institution’s 2009 purchases, the one year programme’s distribution by jurisdiction is still unclear — as is its capacity to persuade other buyers into peripheral paper.
Even so, market participants reported an immediate tightening of secondary spreads. "It will add to positive sentiment in the market and should provide for better windows going forward," said one syndicate official.
New issues are likely as soon as next week, they added. As with the first round
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