'Pointless’ CBPP2 fell short of target

The European Central Bank’s second covered bond purchase programme (CBPP2), reached just 41% of its €40bn target when it closed last month, according to figures released this week. The fact that the ECB did not even manage to buy half of what it had planned was nevertheless welcomed by supply-starved investors and dealers who claimed its actions had exacerbated the illiquid and technically-squeezed core markets on which purchases were focussed.