ECB changes tack to become a price follower, not a leader

Cassa di Risparmio di Parma e Piacenza (Cariparma) issued a €1bn seven year covered bond this week that built on private sector demand, rather than relying on the European Central Bank. The deal followed a handful of lacklustre primary covered bonds in which more than half was placed with the ECB, and revitalises a market which had become deeply despondent about the effects of central bank action.