CBPP.2: What use for peripheral issuers?

The mood has clearly improved following yesterday’s ECB announcement on the second round of covered bond purchasing, and whilst there are hopes that issuance will begin to improve next week, its going to be a trickle and not a stream. Moreover, the programme will do little to allay fears over the peripheral sovereign outlook or their banks' access to the markets. Investors are expected to remain in risk off mode until November 3rd, when more details will be known.