Missing ECB corp bond buying scheme goes unmourned

Richard Metcalf

January 22, 2015 08:45 pm

draghi cover — The president of the European Central Bank Mario Draghi listens to questions during a news conference in Frankfurt, Germany, Thursday, June 5, 2014. The European Central Bank has cut two key interest rates, one of them into negative territory a highly unusual step that underlines the urgency of its efforts to keep the eurozone economy from sliding into crippling deflation. It reduced its main interest rate, the refinancing rate, from a record low of 0.25 percent to 0.15 percent. More drastically, it also cut the rate it pays on money deposited by banks from zero to minus 0.1 percent, an unprecedented step for the ECB that aims to push banks to lend money rather than hoard it. (AP Photo/Michael Probst) | Michael Probst/AP/Press Association Images

European corporate bond bankers were delighted with the market reaction to the European Central Bank’s announcement on Thursday of a bond buying programme of at least €1.08tr, much bigger than expected. And the fact that corporate bonds appear to have been left out of the programme, for now at least, did nothing to dampen their spirits.

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Richard Metcalf

People & Markets Editor GlobalCapital