ECB trains sights on peripheral covered bond issuers ahead of CBPP.2 offensive

With the official unveiling of the European Central Bank’s second covered bond purchase plan less then a week away — and the ECB’s new chief Mario Draghi taking over from Jean-Claude Trichet on November 1 — market participants have told EuroWeek they expect the central bank to concentrate its €40bn of fire power on the weaker and more illiquid markets including France, Spain, Italy, Ireland and Portugal.